Comparing RigNet (RNET) & Keane Group (FRAC)

Keane Group (NYSE: FRAC) and RigNet (NASDAQ:RNET) are both small-cap oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, institutional ownership, profitability and earnings.

Profitability

This table compares Keane Group and RigNet’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Keane Group -9.90% -19.19% -8.80%
RigNet -7.05% -11.13% -5.49%

Institutional and Insider Ownership

38.3% of Keane Group shares are held by institutional investors. Comparatively, 92.4% of RigNet shares are held by institutional investors. 1.2% of RigNet shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Keane Group and RigNet’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Keane Group $420.57 million 3.98 -$187.08 million N/A N/A
RigNet $220.62 million 1.33 -$11.50 million ($0.79) -20.38

RigNet has lower revenue, but higher earnings than Keane Group.

Analyst Ratings

This is a breakdown of current recommendations for Keane Group and RigNet, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Keane Group 0 9 10 0 2.53
RigNet 0 2 1 0 2.33

Keane Group presently has a consensus target price of $20.78, indicating a potential upside of 38.89%. RigNet has a consensus target price of $19.33, indicating a potential upside of 20.08%. Given Keane Group’s stronger consensus rating and higher probable upside, research analysts plainly believe Keane Group is more favorable than RigNet.

Summary

RigNet beats Keane Group on 6 of the 11 factors compared between the two stocks.

About Keane Group

Keane Group, Inc. is provider of integrated well completion services in the United States, with a focus on demanding completion solutions. The Company’s segments include Completion Services, which comprises hydraulic fracturing and wireline divisions, and Other Services, which consists of coiled tubing, cementing and drilling divisions. It provides hydraulic fracturing and wireline services pursuant to contractual arrangements, such as term contracts and pricing agreements, or on a spot market basis. It provides certain complementary services such as coiled tubing, cementing and drilling pursuant to contractual arrangements, such as term contracts on a spot basis. Its primary services include horizontal and vertical fracturing, wireline perforation and logging and engineered solutions, as well as other value-added service offerings. As of July 3, 2017, the Company had approximately 1.2 million hydraulic horsepower spread across 23 hydraulic fracturing fleets and 31 wireline trucks.

About RigNet

RigNet, Inc. (RigNet) provides customized systems and solutions serving customers with data networking and operational requirements. The Company provides voice and data network, video conferencing and monitoring, crew welfare, asset and weather monitoring, and real-time data services. It operates through two segments: Managed Services, and Systems Integration and Automation (SI&A). The Managed Services segment provides remote communications services for offshore and onshore drilling rigs and production facilities, as well as, support vessels and other remote sites. The SI&A segment provides customized solutions for customer telecommunications systems. As of December 31, 2016, the Company provided remote communications and collaborative services to approximately 500 customers reaching approximately 900 remote sites located in approximately 50 countries on six continents. It provides managed remote communications, engineered telecommunications solutions and applications.

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