McDermott International (NYSE: MDR) and Cameron International (NYSE:CAM) are both oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.

Profitability

This table compares McDermott International and Cameron International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
McDermott International 2.95% 5.55% 2.78%
Cameron International 7.17% 11.16% 5.17%

Insider & Institutional Ownership

87.1% of McDermott International shares are held by institutional investors. 1.3% of McDermott International shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for McDermott International and Cameron International, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
McDermott International 0 4 3 0 2.43
Cameron International 0 0 0 0 N/A

McDermott International presently has a consensus target price of $8.47, indicating a potential upside of 16.62%. Given McDermott International’s higher probable upside, equities analysts clearly believe McDermott International is more favorable than Cameron International.

Valuation & Earnings

This table compares McDermott International and Cameron International’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
McDermott International $2.51 billion 0.82 $304.29 million $0.27 26.89
Cameron International N/A N/A N/A N/A N/A

McDermott International has higher revenue and earnings than Cameron International.

Summary

McDermott International beats Cameron International on 5 of the 8 factors compared between the two stocks.

McDermott International Company Profile

McDermott International, Inc. is a provider of integrated engineering, procurement, construction and installation (EPCI), front-end engineering and design (FEED) and module fabrication services for upstream field developments across the world. The Company delivers fixed and floating production facilities, pipeline installations and subsea systems from concept to commissioning for offshore and subsea oil and gas projects. It operates through three segments: the Americas, Europe and Africa (AEA), the Middle East (MEA) and Asia (ASA). As of December 31, 2016, operated in approximately 20 countries across the Americas, Europe, Africa, the Middle East, Asia and Australia, its integrated resources include a diversified fleet of marine vessels, fabrication facilities and engineering offices. It support its activities with project management and procurement services, while utilizing its fully integrated capabilities in both shallow water and deepwater construction.

Cameron International Company Profile

Cameron International Corporation (Cameron), incorporated on November 10, 1994, provides flow equipment products, systems and services to worldwide oil, gas and process industries. The Company operates through four business segments: Subsea, Surface, Drilling and Valves & Measurement (V&M). The Subsea segment delivers integrated solutions, products, systems and services to the subsea oil and gas market, including integrated subsea production systems. Cameron’s Surface segment designs and manufactures wellhead and Christmas tree systemsfor onshore and offshore topside applications – from conventional to high-pressure, high temperature systems, to specialized systems for dry completions and heavy oil. The Drilling segment is a global supplier of integrated drilling systems. The V&M segment’s businesses provide valves and measurement systems. Its businesses serve portions of the upstream, midstream and downstream markets.

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