Head-To-Head Review: Forbes Energy Services (NASDAQ:FES) & Basic Energy Services (BAS)
Forbes Energy Services (NASDAQ: FES) and Basic Energy Services (NYSE:BAS) are both oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitabiliy, dividends, valuation, analyst recommendations, institutional ownership and risk.
Earnings and Valuation
This table compares Forbes Energy Services and Basic Energy Services’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Forbes Energy Services||N/A||N/A||N/A||($4.36)||-0.02|
|Basic Energy Services||$692.45 million||0.59||-$25.85 million||N/A||N/A|
Forbes Energy Services has higher revenue, but lower earnings than Basic Energy Services.
This table compares Forbes Energy Services and Basic Energy Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Forbes Energy Services||-81.29%||N/A||-28.29%|
|Basic Energy Services||-44.40%||-71.68%||-21.65%|
This is a breakdown of current ratings and target prices for Forbes Energy Services and Basic Energy Services, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Forbes Energy Services||0||0||0||0||N/A|
|Basic Energy Services||0||7||3||0||2.30|
Basic Energy Services has a consensus price target of $26.50, suggesting a potential upside of 60.41%. Given Basic Energy Services’ higher possible upside, analysts clearly believe Basic Energy Services is more favorable than Forbes Energy Services.
Institutional and Insider Ownership
32.0% of Forbes Energy Services shares are held by institutional investors. Comparatively, 95.3% of Basic Energy Services shares are held by institutional investors. 20.7% of Forbes Energy Services shares are held by insiders. Comparatively, 11.1% of Basic Energy Services shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Risk and Volatility
Forbes Energy Services has a beta of 2.16, meaning that its share price is 116% more volatile than the S&P 500. Comparatively, Basic Energy Services has a beta of 2.74, meaning that its share price is 174% more volatile than the S&P 500.
Basic Energy Services beats Forbes Energy Services on 7 of the 9 factors compared between the two stocks.
About Forbes Energy Services
Forbes Energy Services Ltd. (FES Ltd.) is a holding company. The Company is an independent oilfield services contractor that provides a range of well site services to oil and natural gas drilling and producing companies to develop the production of oil and natural gas. The Company’s segments are Well Servicing and Fluid Logistics. Its services include fluid disposal and well maintenance. The Company’s Well Servicing segment provides an offering of well services to oil and natural gas companies, including completions of drilled oil and natural gas wells, wellbore maintenance, workovers and recompletions, tubing testing, and plugging and abandonment services. Its Fluid Logistics segment provides a range of oilfield fluid sales, transportation, storage and disposal services that are required on workover, drilling and completion projects, and are used in daily operation of producing wells by oil and natural gas producers. It operates approximately six coiled tubing spreads.
About Basic Energy Services
Basic Energy Services, Inc. provides a range of well site services in the United States to oil and natural gas drilling and producing companies, including completion and remedial services, fluid services, well servicing and contract drilling. The Company operates through the segment, which include Completion and Remedial Services, Fluid Services, Well Servicing and Contract Drilling. The Company’s operations are managed regionally and are concentrated in the United States onshore oil and natural gas producing regions located in Texas, New Mexico, Oklahoma, Arkansas, Kansas, Louisiana, Wyoming, North Dakota, Colorado, Utah, Montana, West Virginia, California, Ohio and Pennsylvania. Its operations are focused on liquids-rich basins, as well as natural gas-focused shale plays characterized by prolific reserves. It has a presence in the Permian Basin and the Bakken, Eagle Ford, Haynesville and Marcellus shales.
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