Critical Survey: Dril-Quip (NYSE:DRQ) versus Oil States International (OIS)
Dril-Quip (NYSE: DRQ) and Oil States International (NYSE:OIS) are both small-cap oils/energy companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitabiliy, earnings, dividends and risk.
Risk & Volatility
Dril-Quip has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500. Comparatively, Oil States International has a beta of 1.69, meaning that its share price is 69% more volatile than the S&P 500.
Earnings & Valuation
This table compares Dril-Quip and Oil States International’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Dril-Quip||$476.88 million||3.38||$59.69 million||$0.54||78.89|
|Oil States International||$671.81 million||1.90||$37.12 million||($1.06)||-23.58|
Dril-Quip has higher revenue, but lower earnings than Oil States International. Oil States International is trading at a lower price-to-earnings ratio than Dril-Quip, indicating that it is currently the more affordable of the two stocks.
This table compares Dril-Quip and Oil States International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Oil States International||-7.94%||-4.21%||-3.65%|
This is a breakdown of recent recommendations and price targets for Dril-Quip and Oil States International, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Oil States International||0||10||3||0||2.23|
Dril-Quip currently has a consensus target price of $53.67, indicating a potential upside of 25.98%. Oil States International has a consensus target price of $35.00, indicating a potential upside of 40.00%. Given Oil States International’s stronger consensus rating and higher possible upside, analysts plainly believe Oil States International is more favorable than Dril-Quip.
Dril-Quip beats Oil States International on 6 of the 11 factors compared between the two stocks.
Dril-Quip, Inc. (Dril-Quip) designs, manufactures, sells and services engineered drilling and production equipment. The Company’s operations are organized into three geographic segments: Western Hemisphere, including North and South America, headquartered in Houston, Texas; Eastern Hemisphere, including Europe and Africa, headquartered in Aberdeen, Scotland, and Asia-Pacific, including the Pacific Rim, Southeast Asia, Australia, India and the Middle East, headquartered in Singapore. Its equipment is suited for use in deepwater, harsh environments and service applications. Its principal products consist of subsea and surface wellheads, subsea and surface production trees, subsea control systems and manifolds, mudline hanger systems, specialty connectors and associated pipe, drilling and production riser systems, liner hangers, wellhead connectors and diverters. The Company has manufacturing facilities in approximately three of its headquarter locations, as well as in Macae, Brazil.
About Oil States International
Oil States International, Inc., through its subsidiaries, provides specialty products and services to oil and natural gas related companies throughout the world. The Company operates as a technology-focused energy services company. The Company operates through two segments: Offshore Products and Well Site Services. Through Offshore Products segment, the Company provides engineered products and services for offshore oil and natural gas production systems and facilities, as well as certain products and services to the offshore and land-based drilling and completion markets. The Company’s well site services segment includes a range of products and services that are used to drill for, establish and maintain the flow of oil and natural gas from a well throughout its life cycle. The Company operates in active oil and natural gas producing regions, including onshore and offshore the United States, Canada, West Africa, the North Sea, South America and Southeast and Central Asia.
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