Financial Comparison: Superior Energy Services (SPN) & Ferrellgas Partners (FGP)

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

Earnings & Valuation

This table compares Superior Energy Services and Ferrellgas Partners’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Superior Energy Services $1.45 billion 1.19 -$886.89 million ($2.81) -4.01
Ferrellgas Partners $1.93 billion 0.21 -$54.20 million ($0.60) -6.88

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

Profitability

This table compares Superior Energy Services and Ferrellgas 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%
Ferrellgas Partners -2.96% N/A -3.53%

Dividends

Ferrellgas Partners pays an annual dividend of $0.40 per share and has a dividend yield of 9.7%. Superior Energy Services does not pay a dividend. Ferrellgas Partners pays out -66.7% of its earnings in the form of a dividend.

Institutional & Insider Ownership

6.3% of Ferrellgas Partners shares are held by institutional investors. 3.5% of Superior Energy Services shares are held by insiders. Comparatively, 0.5% of Ferrellgas Partners shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Superior Energy Services and Ferrellgas Partners, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Superior Energy Services 0 15 7 0 2.32
Ferrellgas Partners 2 2 0 0 1.50

Superior Energy Services presently has a consensus target price of $12.88, suggesting a potential upside of 14.21%. Ferrellgas Partners has a consensus target price of $5.00, suggesting a potential upside of 21.07%. Given Ferrellgas Partners’ higher possible upside, analysts clearly believe Ferrellgas Partners is more favorable than Superior Energy Services.

Volatility & Risk

Superior Energy Services has a beta of 2.16, indicating that its stock price is 116% more volatile than the S&P 500. Comparatively, Ferrellgas Partners has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500.

Summary

Ferrellgas Partners beats Superior Energy Services on 10 of the 16 factors compared between the two stocks.

About Superior Energy Services

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.

About Ferrellgas Partners

Ferrellgas Partners, L.P. is engaged in the retail distribution of propane and related equipment sales, and midstream operations, which include crude oil logistics. The Company’s segments include propane and related equipment sales, midstream operations-crude oil logistics, and corporate and other. The propane and related equipment sales segment consists of the distribution of propane and related equipment and supplies. The midstream operations-crude oil logistics segment is engaged in providing crude oil transportation and logistics services. The corporate and other segment includes midstream operations-water solutions. The Company’s two subsidiaries include Ferrellgas Partners Finance Corp. and the operating partnership. Its general partner performs all management functions for the Company and holds general partner interest in Ferrellgas Partners and the operating partnership. It is a distributor of propane and related equipment and supplies to customers in the United States.

Receive News & Ratings for Superior Energy Services Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Superior Energy Services and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply