Contrasting NCS Multistage (NCSM) & Newpark Resources (NR)

NCS Multistage (NASDAQ: NCSM) and Newpark Resources (NYSE:NR) are both small-cap oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, analyst recommendations, earnings and profitability.

Profitability

This table compares NCS Multistage and Newpark Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NCS Multistage 2.42% 2.22% 1.56%
Newpark Resources 0.48% -0.29% -0.17%

Insider and Institutional Ownership

93.0% of NCS Multistage shares are owned by institutional investors. 4.9% of Newpark Resources shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares NCS Multistage and Newpark Resources’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NCS Multistage $98.47 million 8.22 -$17.92 million N/A N/A
Newpark Resources $471.50 million 1.71 -$40.71 million $0.04 235.06

NCS Multistage has higher earnings, but lower revenue than Newpark Resources.

Analyst Ratings

This is a summary of recent ratings for NCS Multistage and Newpark Resources, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NCS Multistage 0 1 7 0 2.88
Newpark Resources 0 1 2 0 2.67

NCS Multistage currently has a consensus target price of $25.33, suggesting a potential upside of 37.46%. Newpark Resources has a consensus target price of $10.00, suggesting a potential upside of 6.38%. Given NCS Multistage’s stronger consensus rating and higher possible upside, analysts plainly believe NCS Multistage is more favorable than Newpark Resources.

Summary

NCS Multistage beats Newpark Resources on 9 of the 11 factors compared between the two stocks.

NCS Multistage Company Profile

NCS Multistage Holdings, Inc. is a provider of engineered products and support services for oil and natural gas well completions and field development strategies. The Company’s products and services include Multistage Unlimited, casing-installed sliding sleeves, downhole frac isolation assembly, AirLock casing buoyancy system and liner hanger systems. The Company provides products and services primarily to exploration and production (E&P) companies for use in onshore wells, predominantly wells that have been drilled with horizontal laterals in unconventional oil and natural gas formations. The Company’s products and services are utilized in oil and natural gas basins throughout North America and in selected international markets, including Argentina, China and Russia.

Newpark Resources Company Profile

Newpark Resources, Inc. is a supplier providing products and services primarily to the oil and gas exploration and production (E&P) industry. The Company’s segments include Fluids Systems, and Mats and Integrated Services. The Fluids Systems segment provides drilling fluids products and technical services to customers in the North America; Europe, the Middle East and Africa; Latin America, and Asia Pacific regions. The Mats and Integrated Services segment provides composite mat rentals, as well as location construction and related site services, to customers at well, production, transportation and refinery locations in the United States. It manufactures and sells composite mats to customers outside of the United States, and to domestic customers outside of the oil and gas exploration market. The Fluids Systems segment offers customized solutions for technical drilling projects involving subsurface conditions, such as horizontal, directional, geologically deep or deep water drilling.

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