Superior Energy Services (NYSE: SPN) and Usa Compression Partners (NYSE:USAC) are both small-cap energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, valuation, institutional ownership, risk and dividends.

Profitability

This table compares Superior Energy Services and Usa Compression Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Superior Energy Services -24.59% -26.18% -9.41%
Usa Compression Partners 3.63% 1.62% 0.76%

Risk & Volatility

Superior Energy Services has a beta of 2.16, meaning that its stock price is 116% more volatile than the S&P 500. Comparatively, Usa Compression Partners has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500.

Dividends

Usa Compression Partners pays an annual dividend of $2.10 per share and has a dividend yield of 11.6%. Superior Energy Services 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.

Analyst Ratings

This is a summary of current recommendations and price targets for Superior Energy Services and Usa Compression Partners, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Superior Energy Services 0 15 7 0 2.32
Usa Compression Partners 0 2 2 0 2.50

Superior Energy Services presently has a consensus target price of $12.88, suggesting a potential upside of 16.37%. Usa Compression Partners has a consensus target price of $18.33, suggesting a potential upside of 0.84%. Given Superior Energy Services’ higher probable upside, analysts clearly believe Superior Energy Services is more favorable than Usa Compression Partners.

Valuation & Earnings

This table compares Superior Energy Services and Usa Compression Partners’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Superior Energy Services $1.45 billion 1.17 -$886.89 million ($2.46) -4.50
Usa Compression Partners $265.92 million 4.24 $12.93 million $0.15 121.20

Usa Compression Partners has lower revenue, but higher earnings than Superior Energy Services. Superior Energy Services 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.

Summary

Usa Compression Partners beats Superior Energy Services on 9 of the 14 factors compared between the two stocks.

Superior Energy Services Company Profile

Superior Energy Services, Inc. provides a range of services and products to the energy industry related to the exploration, development and production of oil and natural gas. The Company’s segments include Drilling Products and Services, which rents and sells bottom hole assemblies, drill pipe, tubulars and specialized equipment for use with onshore and offshore oil and gas well drilling, production and workover activities; Onshore Completion and Workover Services, which provides pressure pumping services used to complete and stimulate production in new oil and gas wells, fluid handling services and well servicing rigs that provide a range of well completion and maintenance services; Production Services, which provides intervention services, such as coiled tubing, cased hole and mechanical wireline, hydraulic workover and snubbing, and remedial pumping services, and Technical Solutions, which provides services requiring specialized engineering, manufacturing or project planning.

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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