Financial Contrast: Recon Technology (RCON) and Cypress Energy Partners (CELP)

Recon Technology (NASDAQ:RCON) and Cypress Energy Partners (NYSE:CELP) are both small-cap oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their dividends, valuation, earnings, analyst recommendations, profitability, institutional ownership and risk.

Dividends

Cypress Energy Partners pays an annual dividend of $0.84 per share and has a dividend yield of 12.6%. Recon Technology does not pay a dividend. Cypress Energy Partners pays out 168.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility & Risk

Recon Technology has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500. Comparatively, Cypress Energy Partners has a beta of 1.41, suggesting that its share price is 41% more volatile than the S&P 500.

Earnings & Valuation

This table compares Recon Technology and Cypress Energy Partners’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Recon Technology $12.80 million 1.06 -$6.65 million N/A N/A
Cypress Energy Partners $286.34 million 0.28 -$810,000.00 $0.50 13.32

Cypress Energy Partners has higher revenue and earnings than Recon Technology.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Recon Technology and Cypress Energy Partners, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Recon Technology 0 0 1 0 3.00
Cypress Energy Partners 0 2 0 0 2.00

Recon Technology presently has a consensus price target of $2.00, suggesting a potential upside of 72.41%. Cypress Energy Partners has a consensus price target of $7.50, suggesting a potential upside of 12.61%. Given Recon Technology’s stronger consensus rating and higher possible upside, analysts plainly believe Recon Technology is more favorable than Cypress Energy Partners.

Profitability

This table compares Recon Technology and Cypress Energy Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Recon Technology -52.50% -41.66% -27.09%
Cypress Energy Partners 3.03% 92.86% 5.49%

Institutional & Insider Ownership

3.5% of Recon Technology shares are owned by institutional investors. Comparatively, 1.3% of Cypress Energy Partners shares are owned by institutional investors. 28.0% of Recon Technology shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

About Recon Technology

Recon Technology, Ltd. provides hardware, software, and on-site services to companies in the petroleum mining and extraction industry in the People's Republic of China. The company offers equipment, tools, and other hardware related to oilfield production and management; and develops and sells industrial automation control and information solutions. It also provides oil and gas production increasing techniques comprising packers of fracturing; production packers; sand prevention in oil and water wells; water locating and plugging techniques; fissure shaper; fracture acidizing technique; and electronic broken-down service to resolve block-up and freezing problems. In addition, the company offers automation systems and services, including pumping unit controller that monitors the pumping units and collects data; RTU to monitor natural gas wells and collect gas well pressure data; wireless dynamometers and wireless pressure gauges; electric multi-way valves for oilfield metering station flow control; and natural gas flow computer systems. Further, it provides Recon SCADA oilfield monitor and data acquisition system for supervision and data collection; EPC service of pipeline SCADA system for pipeline monitoring and data acquisition; EPC service of oil and gas wells SCADA system for monitoring and data acquisition of oil wells and natural gas wells; EPC service of oilfield video surveillance and control system to control the oil and gas wellhead and measurement station areas; and technique service for digital oilfield transformation. Additionally, the company offers oilfield sewage treatment products and services. Recon Technology, Ltd. was incorporated in 2007 and is headquartered in Beijing, the People's Republic of China.

About Cypress Energy Partners

Cypress Energy Partners, L.P. provides pipeline inspection and integrity, and environmental services in North America. It operates in three segments: Pipeline Inspection Services (PIS), Integrity Services (IS), and Water and Environmental Services (W&ES). The PIS segment offers independent inspection services for various facilities and equipment, such as transmission pipelines, oil and natural gas gathering systems, pump and compressor stations, storage facilities and terminals, and gas distribution systems. It offers project coordination, staking, pig tracking, maintenance and construction inspection, ultrasonic nondestructive examination, and related data management services. The IS segment provides hydrostatic testing and related services, including filling, pressure testing, and dewatering to natural gas, petroleum, and pipeline construction companies. It performs various integrity services on newly constructed and existing oil and natural gas pipelines. The W&ES segment provides saltwater disposal (SWD) services; and owns and operates eight commercial SWD facilities in the Bakken Shale region of the Williston Basin in North Dakota, as well as one SWD facilities in the Permian Basin in Texas. This segment also provides flowback water management services by disposing flowback water produced from hydraulic fracturing operations during the completion of oil and natural gas wells; offers water management services by disposing naturally occurring water that is extracted during the oil and natural gas production process; separates residual oil from the saltwater stream and sells it to third-parties; and manages existing SWD facilities. It serves oil and natural gas producers, pipeline owners and operators, public utility or local distribution companies, trucking companies, and third-party purchasers of residual oil. The company was founded in 2012 and is headquartered in Tulsa, Oklahoma. Cypress Energy Partners, L.P. is a subsidiary of Cypress Energy Holdings, LLC.

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