Comparing Oceaneering International (OII) and Exterran (EXTN)

Oceaneering International (NYSE: OII) and Exterran (NYSE:EXTN) 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 risk, analyst recommendations, institutional ownership, valuation, profitability, earnings and dividends.

Analyst Ratings

This is a summary of current recommendations for Oceaneering International and Exterran, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oceaneering International 5 13 3 0 1.90
Exterran 0 1 0 0 2.00

Oceaneering International currently has a consensus target price of $23.46, suggesting a potential upside of 27.87%. Exterran has a consensus target price of $28.00, suggesting a potential upside of 4.67%. Given Oceaneering International’s higher probable upside, analysts plainly believe Oceaneering International is more favorable than Exterran.

Volatility and Risk

Oceaneering International has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500. Comparatively, Exterran has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500.

Profitability

This table compares Oceaneering International and Exterran’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Oceaneering International -0.94% 0.21% 0.10%
Exterran 0.04% -2.82% -1.11%

Insider & Institutional Ownership

99.7% of Oceaneering International shares are held by institutional investors. Comparatively, 87.7% of Exterran shares are held by institutional investors. 0.9% of Oceaneering International shares are held by insiders. Comparatively, 2.2% of Exterran shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Oceaneering International pays an annual dividend of $0.45 per share and has a dividend yield of 2.5%. Exterran does not pay a dividend. Oceaneering International pays out -236.8% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Oceaneering International and Exterran’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Oceaneering International $2.27 billion 0.79 $24.58 million ($0.19) -96.58
Exterran $1.03 billion 0.93 -$227.93 million ($0.02) -1,337.50

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

Summary

Oceaneering International beats Exterran on 10 of the 15 factors compared between the two stocks.

Oceaneering International Company Profile

Oceaneering International, Inc. is an oilfield provider of engineered services and products, primarily to the offshore oil and gas industry, with a focus on deepwater applications. The Company’s business segments are contained within two businesses: services and products provided to the oil and gas industry (Oilfield) and all other services and products (Advanced Technologies). Its four business segments within the Oilfield business are Remotely Operated Vehicles (ROVs), Subsea Products, Subsea Projects and Asset Integrity. The services and products it provides to the oil and gas industry include remotely operated vehicles, specialty subsea hardware, engineering and project management, subsea intervention services, including manned diving, survey and positioning services and asset integrity and nondestructive testing services. The Company serves the defense, aerospace and commercial theme park industries.

Exterran Company Profile

Exterran Corporation provides compression, production and processing products and services that support the production and transportation of oil and natural gas around the world. The Company operates through three segments: contract operations, aftermarket services, and oil and gas product sales. The contract operations segment provides natural gas compression services, production and processing equipment services, and maintenance services to meet specific customer requirements on assets owned by it. The aftermarket services segment provides a range of services to support the surface production, compression and processing needs of customers, from parts sales and normal maintenance services to full operation of a customer’s owned assets. The oil and gas product sales segment provides design, engineering, manufacturing, installation and sale of natural gas compression units, and accessories and equipment used in the production, treating and processing of crude oil and natural gas.

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