IRIS International (NASDAQ: IRIS) and Ranger Energy Services (NASDAQ:RNGR) are both small-cap oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, analyst recommendations, valuation and profitability.

Institutional and Insider Ownership

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

Analyst Ratings

This is a breakdown of recent recommendations for IRIS International and Ranger Energy Services, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IRIS International 0 0 0 0 N/A
Ranger Energy Services 0 3 5 0 2.63

Ranger Energy Services has a consensus target price of $18.75, indicating a potential upside of 26.01%. Given Ranger Energy Services’ higher possible upside, analysts clearly believe Ranger Energy Services is more favorable than IRIS International.

Earnings & Valuation

This table compares IRIS International and Ranger Energy Services’ 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
Ranger Energy Services N/A N/A N/A N/A N/A

Ranger Energy Services has higher revenue, but lower earnings than IRIS International.

Profitability

This table compares IRIS International and Ranger Energy Services’ 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%
Ranger Energy Services -17.80% -22.28% -14.81%

Summary

Ranger Energy Services beats IRIS International on 5 of the 8 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 Ranger Energy Services

Ranger Energy Services, Inc. is an independent provider of high-specification (high-spec) well service rigs and associated services in the United States. The Company focuses on unconventional horizontal well completion and production operations. The Company operates through Well Services and Processing Solutions segment. Well Services segment provides high-spec well service rigs and complementary equipment and services in the United States, with a focus on unconventional horizontal well completion, workover and maintenance operations. Processing Solutions segment engages in the rental, installation, commissioning, start-up, operation and maintenance of MRUs, NGL stabilizer units, NGL storage units and related equipment. The Company also offers full transportation, turn-key mobilization services, installation and ongoing operation services in the field. The Company’s turn-key mobilization services include in-bound transportation and site offloading.

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