Reviewing Superior Energy Services (SPN) & FTS International (FTSI)

Superior Energy Services (NYSE:SPN) and FTS International (NYSE:FTSI) are both small-cap oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, earnings and analyst recommendations.

Profitability

This table compares Superior Energy Services and FTS International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Superior Energy Services -6.76% -16.43% -5.80%
FTS International N/A N/A N/A

Institutional & Insider Ownership

67.3% of FTS International shares are held by institutional investors. 3.8% of Superior Energy Services shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Superior Energy Services and FTS International, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Superior Energy Services 2 11 11 1 2.44
FTS International 0 4 8 0 2.67

Superior Energy Services presently has a consensus price target of $12.25, indicating a potential upside of 28.68%. FTS International has a consensus price target of $20.40, indicating a potential upside of 67.08%. Given FTS International’s stronger consensus rating and higher probable upside, analysts plainly believe FTS International is more favorable than Superior Energy Services.

Earnings and Valuation

This table compares Superior Energy Services and FTS International’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Superior Energy Services $1.87 billion 0.78 -$205.92 million ($1.65) -5.77
FTS International $1.47 billion 0.89 $200.70 million N/A N/A

FTS International has lower revenue, but higher earnings than Superior Energy Services.

Summary

FTS International beats Superior Energy Services on 8 of the 12 factors compared between the two stocks.

About Superior Energy Services

Superior Energy Services, Inc. provides oilfield services and equipment to oil and natural gas exploration and production companies in the United States, the Gulf of Mexico, and internationally. The company operates in four segments: Drilling Products and Services, Onshore Completion and Workover Services, Production Services, and Technical Solutions. The Drilling Products and Services segment rents downhole drilling tools and surfaces; tubulars, such as primary drill pipe strings, landing strings, completion tubulars, and associated accessories; and temporary onshore and offshore accommodation modules and accessories, as well as manufactures and rents bottom hole tools, including stabilizers, non-magnetic drill collars, and hole openers. The Onshore Completion and Workover Services segment offers pressure pumping services comprising hydraulic fracturing and high pressure pumping services used to complete and stimulate production in new oil and gas wells; fluid management services used to obtain, move, store, and dispose of fluids that are involved in the exploration, development, and production of oil and gas; and workover services consisting of installations, completions, and sidetracking of wells, as well as support for perforating operations. The Production Services segment provides intervention services, such as coiled tubing, cased hole and mechanical wireline, hydraulic workover and snubbing, production testing and optimization, and remedial pumping services. The Technical Solutions segment offers well containment systems; completion tools and services, including sand control systems, well screens and filters, and surface-controlled sub surface safety valves; and offshore well decommissioning services comprising plugging and abandoning wells at the end of their economic life, and dismantling and removing associated infrastructure. Superior Energy Services, Inc. was founded in 1991 and is headquartered in Houston, Texas.

About FTS International

FTS International, Inc. provides hydraulic fracturing services in North America. Its services enhance hydrocarbon flow from oil and natural gas wells drilled by exploration and production companies (E&P), in shale and other unconventional resource formations. The company's wireline services primarily consist of setting plugs between hydraulic fracturing stages, creating perforations within hydraulic fracturing stages, and logging the characteristics of resource formations. It operates in five unconventional basins in the United States, including the Permian Basin, the SCOOP/STACK Formation, the Marcellus/Utica Shale, the Eagle Ford Shale, and the Haynesville Shale. As of December 31, 2017, it owned 51 wireline units; and had approximately 1.6 million hydraulic horsepower across 32 fleets. The company serves E&P companies that specialize in unconventional oil and natural gas resources. FTS International, Inc. was founded in 2000 and is headquartered in Fort Worth, Texas.

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