Basic Energy Services (NYSE: BAS) and GulfMark Offshore (NYSE:GLF) are both oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, valuation, institutional ownership and analyst recommendations.

Institutional & Insider Ownership

97.4% of Basic Energy Services shares are owned by institutional investors. Comparatively, 69.2% of GulfMark Offshore shares are owned by institutional investors. 11.1% of Basic Energy Services shares are owned by insiders. Comparatively, 25.4% of GulfMark Offshore shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Basic Energy Services and GulfMark Offshore’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Basic Energy Services $692.45 million 0.62 -$25.85 million ($1,205.99) -0.01
GulfMark Offshore N/A N/A N/A ($7.21) -0.05

GulfMark Offshore has higher revenue, but lower earnings than Basic Energy Services. GulfMark Offshore is trading at a lower price-to-earnings ratio than Basic Energy Services, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Basic Energy Services and GulfMark Offshore’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Basic Energy Services -44.40% -67.31% -20.33%
GulfMark Offshore -164.55% -49.63% -15.14%

Risk and Volatility

Basic Energy Services has a beta of 2.86, suggesting that its stock price is 186% more volatile than the S&P 500. Comparatively, GulfMark Offshore has a beta of 2.81, suggesting that its stock price is 181% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Basic Energy Services and GulfMark Offshore, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Basic Energy Services 0 5 4 0 2.44
GulfMark Offshore 0 2 0 0 2.00

Basic Energy Services currently has a consensus price target of $27.90, indicating a potential upside of 61.55%. Given Basic Energy Services’ stronger consensus rating and higher possible upside, equities analysts plainly believe Basic Energy Services is more favorable than GulfMark Offshore.

Summary

Basic Energy Services beats GulfMark Offshore on 7 of the 11 factors compared between the two stocks.

About Basic Energy Services

Basic Energy Services, Inc. provides a range of well site services in the United States to oil and natural gas drilling and producing companies, including completion and remedial services, fluid services, well servicing and contract drilling. The Company operates through the segment, which include Completion and Remedial Services, Fluid Services, Well Servicing and Contract Drilling. The Company’s operations are managed regionally and are concentrated in the United States onshore oil and natural gas producing regions located in Texas, New Mexico, Oklahoma, Arkansas, Kansas, Louisiana, Wyoming, North Dakota, Colorado, Utah, Montana, West Virginia, California, Ohio and Pennsylvania. Its operations are focused on liquids-rich basins, as well as natural gas-focused shale plays characterized by prolific reserves. It has a presence in the Permian Basin and the Bakken, Eagle Ford, Haynesville and Marcellus shales.

About GulfMark Offshore

GulfMark Offshore, Inc. provides offshore marine support and transportation services. The Company offers these services to companies engaged in the offshore exploration and production of oil and natural gas. The Company operates in three segments: the North Sea (N. Sea), Southeast Asia (SEA) and the Americas. Its vessels transport materials, supplies and personnel to offshore facilities, as well as move and position drilling and production facilities. The operations are conducted in the North Sea, offshore Southeast Asia and offshore in the Americas. It operates a fleet of over 70 owned or managed offshore supply vessels (OSVs), which include over 30 vessels in the North Sea, over 10 vessels offshore Southeast Asia and over 30 vessels offshore the Americas. Its customers include oil and natural gas companies, independent oil and natural gas exploration and production companies working in international markets, and foreign Government-owned or controlled oil and natural gas companies.

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