Flotek Industries (NYSE: FTK) and USA Compression Partners (NYSE:USAC) are both small-cap energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, institutional ownership, earnings and profitability.

Valuation & Earnings

This table compares Flotek Industries and USA Compression Partners’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Flotek Industries $262.83 million 0.99 -$49.13 million ($0.02) -228.00
USA Compression Partners $265.92 million 3.96 $12.93 million $0.15 113.07

USA Compression Partners has higher revenue and earnings than Flotek Industries. Flotek Industries is trading at a lower price-to-earnings ratio than USA Compression Partners, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and price targets for Flotek Industries and USA Compression Partners, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Flotek Industries 0 0 1 0 3.00
USA Compression Partners 0 2 1 0 2.33

USA Compression Partners has a consensus price target of $17.00, indicating a potential upside of 0.24%. Given USA Compression Partners’ higher probable upside, analysts clearly believe USA Compression Partners is more favorable than Flotek Industries.

Risk & Volatility

Flotek Industries has a beta of 1.69, meaning that its share price is 69% more volatile than the S&P 500. Comparatively, USA Compression Partners has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500.

Profitability

This table compares Flotek Industries and USA Compression Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Flotek Industries -10.41% -1.64% -1.25%
USA Compression Partners 3.63% 1.62% 0.76%

Dividends

USA Compression Partners pays an annual dividend of $2.10 per share and has a dividend yield of 12.4%. Flotek Industries does not pay a dividend. USA Compression Partners pays out 1,400.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional and Insider Ownership

84.9% of Flotek Industries shares are held by institutional investors. 5.5% of Flotek Industries shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

USA Compression Partners beats Flotek Industries on 9 of the 14 factors compared between the two stocks.

Flotek Industries Company Profile

Flotek Industries, Inc. is a technology-driven company. The Company develops and supplies chemistry and services to the oil and gas industries, and compounds to companies that make cleaning products, cosmetics, food and beverages, and other products that are sold in consumer and industrial markets. The Company operates through two segments: Energy Chemistry Technologies (ECT), and Consumer and Industrial Chemistry Technologies (CICT). The ECT segment designs, develops, manufactures, packages and markets chemistries for use in oil and gas well drilling, cementing, completion and stimulation activities. Its ECT segment’s services include Reservoir Characterization, Polymer Conformance and Logistics Management. The CICT segment sources citrus oil domestically and internationally, and processor of citrus oils in the world. The CICT segment designs, develops and manufactures products that are sold to companies in the flavor and fragrance industries and specialty chemical industry.

USA Compression Partners Company Profile

USA Compression Partners, LP is an independent provider of compression services in the United States. The Company provides compression services to its customers primarily in connection with infrastructure applications, including both allowing for the processing and transportation of natural gas through the domestic pipeline system and managing crude oil production through artificial lift processes. The Company engineers, designs, operates, services and repairs its compression units, and maintains related support inventory and equipment. It provides compression services in mature conventional basins, including gas lift applications on crude oil wells focused by horizontal drilling techniques. The Company provides compression services in various shale plays throughout the United States, including the Utica, Marcellus, Permian Basin, Delaware Basin, Eagle Ford, Mississippi Lime, Granite Wash, Woodford, Barnett, Haynesville, Niobrara and Fayetteville shales.

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