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

Earnings and Valuation

This table compares Select Egy Svcs and RigNet’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Select Egy Svcs $302.39 million 5.51 -$307.52 million N/A N/A
RigNet $220.62 million 1.24 -$11.50 million ($0.79) -19.05

RigNet has lower revenue, but higher earnings than Select Egy Svcs.

Insider & Institutional Ownership

22.3% of Select Egy Svcs shares are owned by institutional investors. Comparatively, 92.3% of RigNet shares are owned by institutional investors. 1.2% of RigNet shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Select Egy Svcs and RigNet’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Select Egy Svcs -6.18% -6.04% -4.91%
RigNet -7.05% -11.13% -5.49%

Analyst Ratings

This is a summary of recent recommendations for Select Egy Svcs and RigNet, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Select Egy Svcs 1 1 6 0 2.63
RigNet 0 2 1 0 2.33

Select Egy Svcs currently has a consensus target price of $19.00, suggesting a potential upside of 21.25%. RigNet has a consensus target price of $19.33, suggesting a potential upside of 28.46%. Given RigNet’s higher probable upside, analysts clearly believe RigNet is more favorable than Select Egy Svcs.

Summary

Select Egy Svcs beats RigNet on 7 of the 11 factors compared between the two stocks.

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.

RigNet Company Profile

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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