Natural Gas Services Group (NYSE: NGS) and CIRCOR International (NYSE:CIR) are both small-cap oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, profitabiliy, institutional ownership, risk, analyst recommendations and earnings.

Dividends

CIRCOR International pays an annual dividend of $0.15 per share and has a dividend yield of 0.3%. Natural Gas Services Group does not pay a dividend. CIRCOR International pays out 15.3% of its earnings in the form of a dividend.

Profitability

This table compares Natural Gas Services Group and CIRCOR International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Natural Gas Services Group 4.85% 1.42% 1.13%
CIRCOR International 2.74% 6.55% 3.49%

Institutional & Insider Ownership

88.2% of Natural Gas Services Group shares are owned by institutional investors. 6.5% of Natural Gas Services Group shares are owned by insiders. Comparatively, 2.7% of CIRCOR International shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Natural Gas Services Group has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500. Comparatively, CIRCOR International has a beta of 1.66, indicating that its share price is 66% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for Natural Gas Services Group and CIRCOR International, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Natural Gas Services Group 0 0 2 0 3.00
CIRCOR International 1 0 4 0 2.60

Natural Gas Services Group presently has a consensus target price of $35.50, suggesting a potential upside of 44.31%. CIRCOR International has a consensus target price of $65.00, suggesting a potential upside of 30.50%. Given Natural Gas Services Group’s stronger consensus rating and higher probable upside, equities analysts clearly believe Natural Gas Services Group is more favorable than CIRCOR International.

Earnings and Valuation

This table compares Natural Gas Services Group and CIRCOR International’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Natural Gas Services Group $68.98 million 4.61 $27.05 million $0.26 94.62
CIRCOR International $589.51 million 1.39 $56.70 million $0.98 50.83

CIRCOR International has higher revenue and earnings than Natural Gas Services Group. CIRCOR International is trading at a lower price-to-earnings ratio than Natural Gas Services Group, indicating that it is currently the more affordable of the two stocks.

About Natural Gas Services Group

Natural Gas Services Group, Inc. is a provider of small to medium horsepower compression equipment to the natural gas industry. The Company focuses primarily on the non-conventional natural gas and oil production business in the United States, such as coal bed methane, gas shale, tight gas and oil shales. The Company manufactures, fabricates and rents natural gases compressors that enhance the production of natural gas wells and provides maintenance services for its natural gas compressors. In addition, it sells custom fabricated natural gas compressors to meet customer specifications dictated by well pressures, production characteristics and particular applications. It also manufactures and sells flare systems for oil and gas plant and production facilities. The Company’s operating units include Gas Compressor Rental, Engineered Equipment Sales, Service and Maintenance, and Corporate.

About CIRCOR International

CIRCOR International, Inc. (CIRCOR) designs, manufactures and markets engineered products and sub-systems for markets, including oil and gas, aerospace, power and process, and industrial solutions. The Company operates through two segments: CIRCOR Energy (Energy segment (Energy)) and CIRCOR Advanced Flow Solutions (Advanced Flow Solutions segment (AFS)). Energy provides engineered integrated flow control solutions, valves and services primarily in the oil and gas end market. AFS is a flow control technology platform. Energy provides its flow control solutions and services through the brands, including Circle Seal Controls, DeltaValve, Contromatics, Dopak Sampling and others. AFS manufactures and markets control valves, automatic recirculation valves, regulators, fluid controls, actuation systems, landing gear components, pneumatic controls, electro-mechanical controls, and other flow control products and systems. As of December 31, 2016, it operated 19 manufacturing facilities.

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