CSI Compressco (NASDAQ: CCLP) and Oceaneering International (NYSE:OII) are both oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, institutional ownership and valuation.

Dividends

CSI Compressco pays an annual dividend of $0.75 per share and has a dividend yield of 16.0%. Oceaneering International pays an annual dividend of $0.60 per share and has a dividend yield of 2.5%. CSI Compressco pays out -50.0% of its earnings in the form of a dividend. Oceaneering International pays out -206.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Volatility & Risk

CSI Compressco has a beta of 2, suggesting that its stock price is 100% more volatile than the S&P 500. Comparatively, Oceaneering International has a beta of 1.67, suggesting that its stock price is 67% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for CSI Compressco and Oceaneering International, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CSI Compressco 1 3 1 0 2.00
Oceaneering International 2 7 6 0 2.27

CSI Compressco currently has a consensus target price of $7.50, suggesting a potential upside of 60.26%. Oceaneering International has a consensus target price of $29.30, suggesting a potential upside of 20.48%. Given CSI Compressco’s higher probable upside, analysts clearly believe CSI Compressco is more favorable than Oceaneering International.

Valuation and Earnings

This table compares CSI Compressco and Oceaneering International’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CSI Compressco $294.45 million 0.56 $67.78 million ($1.50) -3.12
Oceaneering International $2.00 billion 1.19 $236.08 million ($0.29) -83.86

Oceaneering International has higher revenue and earnings than CSI Compressco. Oceaneering International is trading at a lower price-to-earnings ratio than CSI Compressco, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

28.7% of CSI Compressco shares are owned by institutional investors. Comparatively, 99.7% of Oceaneering International shares are owned by institutional investors. 0.9% of Oceaneering International shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares CSI Compressco and Oceaneering International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CSI Compressco -17.01% -36.43% -6.45%
Oceaneering International -1.41% 1.14% 0.55%

Summary

Oceaneering International beats CSI Compressco on 12 of the 15 factors compared between the two stocks.

CSI Compressco Company Profile

CSI Compressco LP is a provider of compression services and equipment for natural gas and oil production, gathering, transportation, processing and storage. The Company sells custom-designed compressor packages and oilfield fluid pump systems, and provides aftermarket services and compressor package parts and components manufactured by third-party suppliers. It provides these compression services and equipment to a base of natural gas and oil exploration and production, midstream and transmission companies operating throughout many of the onshore producing regions of the United States, as well as in a number of foreign countries, including Mexico, Canada and Argentina. It is a service provider of natural gas compression services in the United States, utilizing its fleet of compressor packages that employs a spectrum of low-, medium- and high-horsepower engines. As of December 31, 2016, its fleet included approximately 6,000 compressor packages.

Oceaneering International Company Profile

Oceaneering International, Inc. is an oilfield provider of engineered services and products, primarily to the offshore oil and gas industry, with a focus on deepwater applications. The Company’s business segments are contained within two businesses: services and products provided to the oil and gas industry (Oilfield) and all other services and products (Advanced Technologies). Its four business segments within the Oilfield business are Remotely Operated Vehicles (ROVs), Subsea Products, Subsea Projects and Asset Integrity. The services and products it provides to the oil and gas industry include remotely operated vehicles, specialty subsea hardware, engineering and project management, subsea intervention services, including manned diving, survey and positioning services and asset integrity and nondestructive testing services. The Company serves the defense, aerospace and commercial theme park industries.

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