Deep Down (OTCMKTS: DPDW) and GulfMark Offshore (NYSE:GLF) are both oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, earnings, valuation and dividends.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Deep Down and GulfMark Offshore, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Deep Down 0 0 0 0 N/A
GulfMark Offshore 0 2 0 0 2.00

Insider and Institutional Ownership

6.0% of Deep Down shares are owned by institutional investors. Comparatively, 69.2% of GulfMark Offshore shares are owned by institutional investors. 25.4% of GulfMark Offshore shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk and Volatility

Deep Down has a beta of -0.13, suggesting that its stock price is 113% less volatile than the S&P 500. Comparatively, GulfMark Offshore has a beta of 2.81, suggesting that its stock price is 181% more volatile than the S&P 500.

Earnings and Valuation

This table compares Deep Down and GulfMark Offshore’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Deep Down $26.05 million 0.57 $3.07 million $0.10 9.80
GulfMark Offshore N/A N/A N/A ($7.21) -0.05

Deep Down has higher revenue and earnings than GulfMark Offshore. GulfMark Offshore is trading at a lower price-to-earnings ratio than Deep Down, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Deep Down and GulfMark Offshore’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Deep Down 6.51% 7.27% 6.26%
GulfMark Offshore -164.55% -49.63% -15.14%

Summary

Deep Down beats GulfMark Offshore on 5 of the 8 factors compared between the two stocks.

About Deep Down

Deep Down, Inc. is engaged in the oilfield services industry. The Company operates through Deep Down Delaware segment. The Company is a provider of specialized services to the offshore energy industry to support deep water and ultra-deep water exploration, development and production of oil and gas, and other maritime operations. It also produces custom engineered products that assist it in fulfilling service objectives for specific projects on a contractual basis. The Company designs and manufactures deep water and ultra-deep water, surface and offshore equipment solutions, which are used by independent and foreign national oil and gas companies in offshore areas across the world. The Company provides engineering and management services, including the design, installation and retrieval of subsea equipment and systems, connection and termination operations, well-commissioning services, as well as construction support and remotely operated vehicle (ROV) operations support.

About GulfMark Offshore

GulfMark Offshore, Inc. provides offshore marine support and transportation services. The Company offers these services to companies engaged in the offshore exploration and production of oil and natural gas. The Company operates in three segments: the North Sea (N. Sea), Southeast Asia (SEA) and the Americas. Its vessels transport materials, supplies and personnel to offshore facilities, as well as move and position drilling and production facilities. The operations are conducted in the North Sea, offshore Southeast Asia and offshore in the Americas. It operates a fleet of over 70 owned or managed offshore supply vessels (OSVs), which include over 30 vessels in the North Sea, over 10 vessels offshore Southeast Asia and over 30 vessels offshore the Americas. Its customers include oil and natural gas companies, independent oil and natural gas exploration and production companies working in international markets, and foreign Government-owned or controlled oil and natural gas companies.

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