Head to Head Analysis: Dril-Quip (DRQ) vs. CIRCOR International (CIR)
Dril-Quip (NYSE: DRQ) and CIRCOR International (NYSE:CIR) are both small-cap oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitabiliy, dividends, analyst recommendations, earnings, institutional ownership and risk.
Earnings and Valuation
This table compares Dril-Quip and CIRCOR International’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Dril-Quip||$476.88 million||3.37||$59.69 million||$0.54||78.71|
|CIRCOR International||$589.51 million||1.39||$56.70 million||$0.98||50.83|
Dril-Quip has higher revenue, but lower earnings than CIRCOR International. CIRCOR 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.
CIRCOR International pays an annual dividend of $0.15 per share and has a dividend yield of 0.3%. Dril-Quip does not pay a dividend. CIRCOR International pays out 15.3% of its earnings in the form of a dividend.
This is a summary of current ratings and price targets for Dril-Quip and CIRCOR International, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Dril-Quip presently has a consensus target price of $53.67, indicating a potential upside of 26.27%. CIRCOR International has a consensus target price of $65.00, indicating a potential upside of 30.50%. Given CIRCOR International’s stronger consensus rating and higher probable upside, analysts plainly believe CIRCOR International is more favorable than Dril-Quip.
Volatility and Risk
Dril-Quip has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500. Comparatively, CIRCOR International has a beta of 1.66, suggesting that its stock price is 66% more volatile than the S&P 500.
This table compares Dril-Quip and CIRCOR International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
CIRCOR International beats Dril-Quip on 9 of the 14 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 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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