Head to Head Survey: Fairmount Santrol (FMSA) vs. McDermott International (MDR)

Fairmount Santrol (NYSE: FMSA) and McDermott International (NYSE:MDR) are both energy companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.

Insider & Institutional Ownership

75.3% of Fairmount Santrol shares are held by institutional investors. Comparatively, 86.1% of McDermott International shares are held by institutional investors. 9.8% of Fairmount Santrol shares are held by company insiders. Comparatively, 1.3% of McDermott International shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Fairmount Santrol and McDermott International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fairmount Santrol 1 10 10 0 2.43
McDermott International 1 4 3 0 2.25

Fairmount Santrol currently has a consensus target price of $5.95, indicating a potential upside of 1.14%. McDermott International has a consensus target price of $7.39, indicating a potential downside of 5.77%. Given Fairmount Santrol’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Fairmount Santrol is more favorable than McDermott International.

Earnings & Valuation

This table compares Fairmount Santrol and McDermott International’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fairmount Santrol $535.01 million 2.46 -$140.19 million $0.05 117.60
McDermott International $2.64 billion 0.84 $34.11 million $0.54 14.52

McDermott International has higher revenue and earnings than Fairmount Santrol. McDermott International is trading at a lower price-to-earnings ratio than Fairmount Santrol, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Fairmount Santrol has a beta of 2.11, indicating that its stock price is 111% more volatile than the S&P 500. Comparatively, McDermott International has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500.

Profitability

This table compares Fairmount Santrol and McDermott International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fairmount Santrol 1.69% 4.05% 0.86%
McDermott International 10.05% 22.63% 11.45%

About Fairmount Santrol

Fairmount Santrol Holdings Inc. is a provider of sand-based proppant solutions. The Company operates through two segments: Proppant Solutions, and Industrial & Recreational (I&R) Products. Its Proppant Solutions segment provides sand-based proppants for use in hydraulic fracturing operations throughout the United States and Canada, Argentina, Mexico, China, northern Europe and the United Arab Emirates. Its I&R segment provides raw, coated, and custom blended sands to the foundry, building products, glass, turf and landscape, and filtration industries in North America. Its asset base includes approximately 800 million tons of proven and probable mineral reserves. As of March 2017, the Company had 10 sand processing facilities with 16.8 million tons of annual sand processing capacity. Its coating facilities include operations in Mexico, Denmark and China, through which it serves international oil and gas markets.

About McDermott International

McDermott International, Inc. is a provider of integrated engineering, procurement, construction and installation (EPCI), front-end engineering and design (FEED) and module fabrication services for upstream field developments across the world. The Company delivers fixed and floating production facilities, pipeline installations and subsea systems from concept to commissioning for offshore and subsea oil and gas projects. It operates through three segments: the Americas, Europe and Africa (AEA), the Middle East (MEA) and Asia (ASA). As of December 31, 2016, operated in approximately 20 countries across the Americas, Europe, Africa, the Middle East, Asia and Australia, its integrated resources include a diversified fleet of marine vessels, fabrication facilities and engineering offices. It support its activities with project management and procurement services, while utilizing its fully integrated capabilities in both shallow water and deepwater construction.

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