Critical Analysis: Gulf Island Fabrication (GIFI) versus Newpark Resources (NR)
Gulf Island Fabrication (NASDAQ: GIFI) and Newpark Resources (NYSE:NR) 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 analyst recommendations, earnings, dividends, valuation, risk, profitability and institutional ownership.
Risk and Volatility
Gulf Island Fabrication has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500. Comparatively, Newpark Resources has a beta of 1.64, meaning that its stock price is 64% more volatile than the S&P 500.
Gulf Island Fabrication pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. Newpark Resources does not pay a dividend. Gulf Island Fabrication pays out -2.9% of its earnings in the form of a dividend.
This is a summary of recent ratings and target prices for Gulf Island Fabrication and Newpark Resources, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Gulf Island Fabrication||0||0||0||0||N/A|
Newpark Resources has a consensus target price of $9.50, suggesting a potential downside of 3.06%. Given Newpark Resources’ higher possible upside, analysts plainly believe Newpark Resources is more favorable than Gulf Island Fabrication.
Insider and Institutional Ownership
65.8% of Gulf Island Fabrication shares are owned by institutional investors. 3.4% of Gulf Island Fabrication shares are owned by company insiders. Comparatively, 4.9% of Newpark Resources shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares Gulf Island Fabrication and Newpark Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Gulf Island Fabrication||-9.96%||-7.83%||-6.35%|
Valuation and Earnings
This table compares Gulf Island Fabrication and Newpark Resources’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Gulf Island Fabrication||$204.71 million||0.92||-$10.08 million||($1.37)||-9.23|
|Newpark Resources||$583.35 million||1.44||$24.26 million||($0.15)||-65.33|
Newpark Resources has higher revenue and earnings than Gulf Island Fabrication. Newpark Resources is trading at a lower price-to-earnings ratio than Gulf Island Fabrication, indicating that it is currently the more affordable of the two stocks.
Newpark Resources beats Gulf Island Fabrication on 11 of the 14 factors compared between the two stocks.
Gulf Island Fabrication Company Profile
Gulf Island Fabrication, Inc. (Gulf Island) is a holding company. The Company, along with its subsidiaries, is a fabricator of steel platforms and other specialized structures for customers in the offshore oil and gas industry. It also performs onshore and offshore construction and fabrication services for customers in the marine industry. Its primary activity is the fabrication of offshore drilling and production platforms and other steel structures for customers in the oil and gas and marine industries, including jackets and deck sections of fixed production platforms, hull, tendon, and/or deck sections of floating production platforms, piles, wellhead protectors. It conducts its operations through its subsidiaries, which include Gulf Island, L.L.C.; Gulf Marine Fabricators, L.P.; Gulf Island Marine Fabricators, L.L.C.; Gulf Island Shipyards, L.L.C.; Dolphin Services, L.L.C.; and Dolphin Steel Sales, L.L.C.
Newpark Resources Company Profile
Newpark Resources, Inc. is a supplier providing products and services primarily to the oil and gas exploration and production (E&P) industry. The Company’s segments include Fluids Systems, and Mats and Integrated Services. The Fluids Systems segment provides drilling fluids products and technical services to customers in the North America; Europe, the Middle East and Africa; Latin America, and Asia Pacific regions. The Mats and Integrated Services segment provides composite mat rentals, as well as location construction and related site services, to customers at well, production, transportation and refinery locations in the United States. It manufactures and sells composite mats to customers outside of the United States, and to domestic customers outside of the oil and gas exploration market. The Fluids Systems segment offers customized solutions for technical drilling projects involving subsurface conditions, such as horizontal, directional, geologically deep or deep water drilling.
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