Willbros Group (NYSE: WG) and Profire Energy (NASDAQ:PFIE) are both small-cap oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.

Profitability

This table compares Willbros Group and Profire Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Willbros Group -6.17% -31.89% -11.13%
Profire Energy 8.86% 6.14% 5.82%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Willbros Group and Profire Energy, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Willbros Group 0 0 0 0 N/A
Profire Energy 0 0 1 0 3.00

Willbros Group presently has a consensus price target of $1.35, indicating a potential downside of 38.64%. Profire Energy has a consensus price target of $2.15, indicating a potential upside of 46.26%. Given Profire Energy’s higher probable upside, analysts plainly believe Profire Energy is more favorable than Willbros Group.

Volatility and Risk

Willbros Group has a beta of 3.22, indicating that its share price is 222% more volatile than the S&P 500. Comparatively, Profire Energy has a beta of 1.69, indicating that its share price is 69% more volatile than the S&P 500.

Insider and Institutional Ownership

58.7% of Willbros Group shares are owned by institutional investors. Comparatively, 19.8% of Profire Energy shares are owned by institutional investors. 2.1% of Willbros Group shares are owned by company insiders. Comparatively, 58.7% of Profire Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Willbros Group and Profire Energy’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Willbros Group $730.56 million 0.19 -$9.80 million ($0.73) -3.01
Profire Energy $30.09 million 2.37 $4.95 million $0.05 29.41

Profire Energy has higher revenue, but lower earnings than Willbros Group. Willbros Group is trading at a lower price-to-earnings ratio than Profire Energy, indicating that it is currently the more affordable of the two stocks.

Summary

Profire Energy beats Willbros Group on 9 of the 12 factors compared between the two stocks.

Willbros Group Company Profile

Willbros Group, Inc. is a specialty energy infrastructure contractor serving the oil and gas and power industries with offerings that primarily include construction, maintenance and facilities development services. The Company operates through three segments: Oil & Gas, Utility T&D and Canada. The Company provides services through operating subsidiaries. The Company’s segments operated primarily in the United States and Canada. The Company provides construction, maintenance and lifecycle extension services to the midstream markets. The Company provides a range of services in electric and natural gas transmission and distribution, including engineering, procurement, maintenance and construction, repair and restoration of utility infrastructure. It is engaged in construction, maintenance and fabrication, including integrity and supporting civil work, general mechanical and facility construction, application program interface (API) storage tanks, general and modular fabrication.

Profire Energy Company Profile

Profire Energy, Inc. is an oilfield technology company. The Company is primarily engaged in the business of developing combustion management technologies for the oil and gas industry. It specializes in the creation of burner-management systems, used on a range of oilfield natural-draft fire tube vessels. It offers burner-management systems, which help to ignite, monitor and manage the burner flame. Its solution, the PF3100, helps manage and synchronize custom applications helping oilfield producers meet deadlines through an off-the-shelf solution with dynamic customization. It also sells complementary oilfield products. Such products help manage fuel flow (such as valves and fuel trains), meter air flow (such as airplates), generate power on-site (such as solar packages), ignite and direct flame (such as flare stack igniter and nozzles), and other functions. In addition to the burner-management systems and complementary technologies, it also offers chemical-management systems.

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