IRIS International (NASDAQ: IRIS) and Forum Energy Technologies (NYSE:FET) are both small-cap oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, dividends, profitability, risk and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for IRIS International and Forum Energy Technologies, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IRIS International 0 0 0 0 N/A
Forum Energy Technologies 0 11 5 0 2.31

Forum Energy Technologies has a consensus target price of $19.67, suggesting a potential upside of 39.98%. Given Forum Energy Technologies’ higher possible upside, analysts clearly believe Forum Energy Technologies is more favorable than IRIS International.

Insider & Institutional Ownership

68.9% of IRIS International shares are owned by institutional investors. 9.7% of IRIS International shares are owned by insiders. Comparatively, 32.8% of Forum Energy Technologies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

IRIS International has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500. Comparatively, Forum Energy Technologies has a beta of 1.64, indicating that its share price is 64% more volatile than the S&P 500.

Earnings & Valuation

This table compares IRIS International and Forum Energy Technologies’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
IRIS International $47.70 million 0.82 -$24.80 million ($2.49) -1.30
Forum Energy Technologies $657.68 million 2.06 -$22.64 million ($1.31) -10.73

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

Profitability

This table compares IRIS International and Forum Energy Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
IRIS International -61.58% -36.70% -29.47%
Forum Energy Technologies -18.89% -4.55% -3.03%

Summary

Forum Energy Technologies beats IRIS International on 11 of the 12 factors compared between the two stocks.

About IRIS International

Mitcham Industries, Inc. is a provider of equipment to the geophysical, oceanographic and hydrographic industries. The Company operates through two segments. The Equipment Leasing segment is primarily engaged in the leasing of seismic equipment to companies in the oil and gas industry across the world. The Equipment Manufacturing and Sales segment is engaged in the design, production and sale of marine seismic equipment, and oceanographic and hydrographic equipment. Its leasing business includes Mitcham Canada ULC, Seismic Asia Pacific Pty Ltd., Mitcham Seismic Eurasia LLC, Mitcham Europe Ltd. and Mitcham Marine Leasing Pte. Ltd. The Equipment Manufacturing and Sales Segment includes its Seamap International Holdings Pte, Ltd. (Seamap) business and Klein Marine Systems, Inc. (Klein). Seamap designs, manufactures and sells a range of products for the seismic, hydrographic and offshore industries. Klein develops and manufactures high performance side scan sonar systems.

About Forum Energy Technologies

Forum Energy Technologies, Inc. is an oilfield products company. The Company designs, manufactures and distributes products, and engages in aftermarket services, parts supply and related services. The Company operates through three segments: Drilling & Subsea, Completions, and Production & Infrastructure. The Drilling & Subsea segment designs and manufactures products, and provides related services to the drilling and subsea construction markets. The Completions segment designs, manufactures and supplies products, and provide related services to the well construction, completion, stimulation and intervention markets. The Production & Infrastructure segment designs, manufactures and supplies products, and provides related equipment and services to production and infrastructure markets. Its product offering includes a mix of engineered capital products and replaced items that are used in the exploration, development, production and transportation of oil and natural gas.

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