Analyzing TETRA Technologies (TTI) & Flotek Industries (FTK)

TETRA Technologies (NYSE: TTI) and Flotek Industries (NYSE:FTK) are both small-cap energy companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, profitability, risk and earnings.

Volatility and Risk

TETRA Technologies has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500. Comparatively, Flotek Industries has a beta of 1.77, suggesting that its share price is 77% more volatile than the S&P 500.

Insider & Institutional Ownership

90.3% of TETRA Technologies shares are owned by institutional investors. Comparatively, 84.2% of Flotek Industries shares are owned by institutional investors. 3.6% of TETRA Technologies shares are owned by company insiders. Comparatively, 5.5% of Flotek Industries shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and target prices for TETRA Technologies and Flotek Industries, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TETRA Technologies 0 6 6 0 2.50
Flotek Industries 0 0 1 0 3.00

TETRA Technologies currently has a consensus price target of $5.11, indicating a potential upside of 31.73%. Given TETRA Technologies’ higher possible upside, analysts plainly believe TETRA Technologies is more favorable than Flotek Industries.

Earnings and Valuation

This table compares TETRA Technologies and Flotek Industries’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TETRA Technologies $694.76 million 0.65 -$161.46 million ($0.43) -9.02
Flotek Industries $262.83 million 1.18 -$49.13 million ($0.02) -273.00

Flotek Industries has lower revenue, but higher earnings than TETRA Technologies. Flotek Industries is trading at a lower price-to-earnings ratio than TETRA Technologies, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares TETRA Technologies and Flotek Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TETRA Technologies -5.47% -6.89% -2.05%
Flotek Industries -10.41% -1.64% -1.25%

Summary

Flotek Industries beats TETRA Technologies on 8 of the 14 factors compared between the two stocks.

About TETRA Technologies

TETRA Technologies, Inc. is an oil and gas services company. The Company focuses on completion fluids and associated products and services, water management, production well testing, offshore rig cooling, compression services and equipment, and offshore services, such as decommissioning and diving. It is composed of five segments organized into four divisions: Fluids, Production Testing, Compression and Offshore. The Fluids division manufactures and markets clear brine fluids, additives and associated products and services to the oil and gas industry. Its Production Testing division provides frac flowback services, production well testing services, offshore rig cooling and other associated services in various oil and gas producing regions. The Compression division provides compression services and equipment for natural gas and oil production, gathering, transportation, processing and storage. The Offshore division consists of two operating segments: Offshore Services and Maritech.

About Flotek Industries

Flotek Industries, Inc. is a technology-driven company. The Company develops and supplies chemistry and services to the oil and gas industries, and compounds to companies that make cleaning products, cosmetics, food and beverages, and other products that are sold in consumer and industrial markets. The Company operates through two segments: Energy Chemistry Technologies (ECT), and Consumer and Industrial Chemistry Technologies (CICT). The ECT segment designs, develops, manufactures, packages and markets chemistries for use in oil and gas well drilling, cementing, completion and stimulation activities. Its ECT segment’s services include Reservoir Characterization, Polymer Conformance and Logistics Management. The CICT segment sources citrus oil domestically and internationally, and processor of citrus oils in the world. The CICT segment designs, develops and manufactures products that are sold to companies in the flavor and fragrance industries and specialty chemical industry.

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