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

Institutional and Insider Ownership

23.4% of Emerge Energy Services shares are held by institutional investors. Comparatively, 32.4% of Ranger Energy Services shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Emerge Energy Services and Ranger Energy Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Emerge Energy Services -10.94% -69.67% -11.03%
Ranger Energy Services -14.29% -14.10% -10.47%

Earnings & Valuation

This table compares Emerge Energy Services and Ranger Energy Services’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Emerge Energy Services $128.40 million 1.87 -$72.77 million ($1.19) -6.70
Ranger Energy Services $52.80 million 2.74 -$5.00 million N/A N/A

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

Analyst Ratings

This is a breakdown of current recommendations for Emerge Energy Services and Ranger Energy Services, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Emerge Energy Services 0 4 4 0 2.50
Ranger Energy Services 0 3 5 0 2.63

Emerge Energy Services presently has a consensus price target of $17.00, indicating a potential upside of 113.30%. Ranger Energy Services has a consensus price target of $17.25, indicating a potential upside of 82.15%. Given Emerge Energy Services’ higher probable upside, research analysts clearly believe Emerge Energy Services is more favorable than Ranger Energy Services.

Summary

Ranger Energy Services beats Emerge Energy Services on 7 of the 10 factors compared between the two stocks.

About Emerge Energy Services

Emerge Energy Services LP owns, operates, acquires and develops a portfolio of energy service assets. The Company operates through Sand segment. The Company conducts its Sand operations through its subsidiary, Superior Silica Sands LLC (SSS). The Company’s Sand business mines, processes and distributes silica sand, an input for the hydraulic fracturing of oil and gas wells. As of December 31, 2016, its Wisconsin facilities consisted of three dry plants located in Arland, Barron and New Auburn, Wisconsin, with a total permitted capacity of 6.3 million finished tons per year, and five wet plants and mine complexes. As of December 31, 2016, its dry plant in Kosse, Texas, had a capacity of 600,000 tons per year that is supplied by a separate mine and wet plant that processes local Texas sand. As of December 31, 2016, the Company also had 14 transload facilities located throughout North America in the basins where it delivers its sand, as well as a fleet of 5,573 railcars.

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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