Keane Group (FRAC) and Select Egy Svcs (WTTR) Critical Review

Keane Group (NYSE: FRAC) and Select Egy Svcs (NYSE:WTTR) are both small-cap oils/energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.

Institutional & Insider Ownership

38.3% of Keane Group shares are owned by institutional investors. Comparatively, 22.3% of Select Egy Svcs shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Keane Group and Select Egy Svcs’ 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%
Select Egy Svcs -6.18% -6.04% -4.91%

Valuation and Earnings

This table compares Keane Group and Select Egy Svcs’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Keane Group $420.57 million 4.16 -$187.08 million N/A N/A
Select Egy Svcs $302.39 million 5.82 -$307.52 million N/A N/A

Keane Group has higher revenue and earnings than Select Egy Svcs.

Analyst Recommendations

This is a breakdown of recent recommendations for Keane Group and Select Egy Svcs, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Keane Group 0 9 10 0 2.53
Select Egy Svcs 1 1 6 0 2.63

Keane Group currently has a consensus price target of $20.78, suggesting a potential upside of 32.85%. Select Egy Svcs has a consensus price target of $19.00, suggesting a potential upside of 14.80%. Given Keane Group’s higher possible upside, equities research analysts clearly believe Keane Group is more favorable than Select Egy Svcs.

Keane Group Company Profile

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.

Select Egy Svcs Company Profile

Select Energy Services, Inc. is a holding company. The Company is provider of total water solutions to the United States unconventional oil and gas industry. The Company is engaged in sourcing and transfer of water prior to its use in drilling and completion activities associated with hydraulic fracturing or fracking, which collectively referrd to as pre-frac water services. The Company provides its services to integrated and exploration and production (E&P) companies. Its operating segments include water solutions, accommodation and rentals, and wellsite completion and constructive services. The Company’s services include water sourcing, water transfer, water treatment, fluid handling, disposal solutions, accommodations, rentals, and wellsite construction. The Company also provides complementary water-related services that support oil and gas well completion and production activities including containment, monitoring, treatment, flowback, hauling and disposal.

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