Eco-Stim Energy Solutions (NASDAQ: ESES) and Ranger Energy Services (NYSE:RNGR) are both small-cap oil related services and equipment – nec companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, risk, earnings and institutional ownership.

Institutional & Insider Ownership

84.3% of Eco-Stim Energy Solutions shares are owned by institutional investors. Comparatively, 32.4% of Ranger Energy Services shares are owned by institutional investors. 11.1% of Eco-Stim Energy Solutions shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for Eco-Stim Energy Solutions and Ranger Energy Services, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eco-Stim Energy Solutions 0 1 4 0 2.80
Ranger Energy Services 0 3 5 0 2.63

Eco-Stim Energy Solutions presently has a consensus price target of $2.36, indicating a potential upside of 66.20%. Ranger Energy Services has a consensus price target of $17.25, indicating a potential upside of 75.66%. Given Ranger Energy Services’ higher probable upside, analysts plainly believe Ranger Energy Services is more favorable than Eco-Stim Energy Solutions.

Profitability

This table compares Eco-Stim Energy Solutions and Ranger Energy Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Eco-Stim Energy Solutions -85.29% -43.11% -23.60%
Ranger Energy Services -14.29% -14.10% -10.47%

Valuation & Earnings

This table compares Eco-Stim Energy Solutions and Ranger Energy Services’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Eco-Stim Energy Solutions $8.35 million 12.68 -$17.92 million ($1.08) -1.31
Ranger Energy Services $52.80 million 2.84 -$5.00 million ($0.77) -12.75

Ranger Energy Services has higher revenue and earnings than Eco-Stim Energy Solutions. Ranger Energy Services is trading at a lower price-to-earnings ratio than Eco-Stim Energy Solutions, indicating that it is currently the more affordable of the two stocks.

Summary

Ranger Energy Services beats Eco-Stim Energy Solutions on 8 of the 12 factors compared between the two stocks.

Eco-Stim Energy Solutions Company Profile

Eco-Stim Energy Solutions, Inc. is an oilfield services company. The Company provides well stimulation, coiled tubing and field management services to the upstream oil and gas industry. The Company focuses on the active shale and unconventional oil and natural gas basins outside the United States and it has commenced operations in Argentina. The Company operates well stimulation fleets, coiled tubing units and other downhole completion equipment, as well as provides sweet spot analysis in shale resource basins using geophysical predictive modeling combined with real-time feedback from down-hole diagnostic tools. The Company offers a pumping fleet, including well-stimulation pumps, nitrogen pumping units and cranes, in both trailer-mounted and skid-mounted configurations. It provides a range of pressure-pumping services, including work-over pumping, well injection and wireline pump downs.

Ranger Energy Services Company Profile

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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