Select Energy Services (NASDAQ: WTTR) and CGG (NYSE:CGG) are both small-cap energy companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, valuation, profitabiliy, institutional ownership and earnings.

Institutional & Insider Ownership

0.9% of CGG shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Select Energy Services and CGG’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Select Energy Services -12.29% -14.94% -11.64%
CGG -51.98% -46.27% -11.90%

Earnings and Valuation

This table compares Select Energy Services and CGG’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Select Energy Services $323.49 million 1.48 $22.03 million N/A N/A
CGG $1.13 billion 0.09 $358.80 million ($30.71) -0.15

CGG has higher revenue and earnings than Select Energy Services.

Analyst Recommendations

This is a breakdown of current ratings for Select Energy Services and CGG, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Select Energy Services 0 1 6 0 2.86
CGG 2 0 0 0 1.00

Select Energy Services presently has a consensus target price of $19.71, indicating a potential upside of 24.70%. Given Select Energy Services’ stronger consensus rating and higher probable upside, equities analysts plainly believe Select Energy Services is more favorable than CGG.

Summary

Select Energy Services beats CGG on 7 of the 10 factors compared between the two stocks.

About Select Energy Services

Select Energy Services, Inc. is a holding company. The Company is provider of total water solutions to the United States unconventional oil and gas industry. The Company is engaged in sourcing and transfer of water prior to its use in drilling and completion activities associated with hydraulic fracturing or fracking, which collectively referrd to as pre-frac water services. The Company provides its services to integrated and exploration and production (E&P) companies. Its operating segments include water solutions, accommodation and rentals, and wellsite completion and constructive services. The Company’s services include water sourcing, water transfer, water treatment, fluid handling, disposal solutions, accommodations, rentals, and wellsite construction. The Company also provides complementary water-related services that support oil and gas well completion and production activities including containment, monitoring, treatment, flowback, hauling and disposal.

About CGG

CGG SA (CGG) is a manufacturer of geophysical equipment. The Company provides marine, land and airborne data acquisition services, as well as a range of other geoscience services, including data imaging, geoscience and petroleum engineering consulting services, and collecting, developing and licensing geological data. Its segments include Contractual Data Acquisition; Geology, Geophysics & Reservoir (GGR); Equipment, and Non-Operated Resources. The Contractual Data Acquisition includes marine, and land and multi-physics. Its GGR segment includes the Multi-client business line and the Subsurface Imaging and Reservoir business lines (processing and imaging of geophysical data, reservoir characterization, geophysical consulting and software services, geological data library and data management solutions). The Equipment segment consists of its manufacturing and sales activities for seismic equipment. It operates through Saturno, a multi-client survey over Santos Basin Offshore Brazil.

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