Analyzing Core Laboratories (NYSE:CLB) & Tetra Technologies (NYSE:TTI)

Tetra Technologies (NYSE:TTI) and Core Laboratories (NYSE:CLB) are both small-cap energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.

Profitability

This table compares Tetra Technologies and Core Laboratories’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tetra Technologies	19.75%	13.07%	5.76%
Core Laboratories	6.21%	12.85%	5.74%

Earnings & Valuation

This table compares Tetra Technologies and Core Laboratories”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tetra Technologies	$599.11 million	1.94	$108.28 million	$0.91	9.56
Core Laboratories	$523.85 million	1.46	$31.40 million	$0.67	24.52

Tetra Technologies has higher revenue and earnings than Core Laboratories. Tetra Technologies is trading at a lower price-to-earnings ratio than Core Laboratories, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Tetra Technologies has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500. Comparatively, Core Laboratories has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500.

Institutional and Insider Ownership

70.2% of Tetra Technologies shares are owned by institutional investors. Comparatively, 97.8% of Core Laboratories shares are owned by institutional investors. 5.7% of Tetra Technologies shares are owned by insiders. Comparatively, 0.9% of Core Laboratories shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Tetra Technologies and Core Laboratories, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tetra Technologies	0	1	3	0	2.75
Core Laboratories	0	4	0	0	2.00

Tetra Technologies currently has a consensus price target of $7.50, indicating a potential downside of 13.79%. Core Laboratories has a consensus price target of $12.50, indicating a potential downside of 23.91%. Given Tetra Technologies’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Tetra Technologies is more favorable than Core Laboratories.

Summary

Tetra Technologies beats Core Laboratories on 12 of the 14 factors compared between the two stocks.

About Tetra Technologies

TETRA Technologies, Inc., together with its subsidiaries, operates as an energy services and solutions company. It operates through two segments, Completion Fluids & Products Division and Water & Flowback Services. The Completion Fluids & Products segment manufactures and markets clear brine fluids, additives, and associated products and services to the oil and gas industry for use in well drilling, completion, and workover operations in the United States, as well as in Latin America, Europe, Asia, the Middle East, and Africa. This segment also markets liquid and dry calcium chloride products; and TETRA PureFlow ultra-pure zinc bromide to battery technology companies. The Water & Flowback Services segment provides water management services for onshore oil and gas operators. This segment also offers frac flowback, production well testing, and other associated services in oil and gas producing regions in the United States, as well as in various basins in Latin America, Africa, Europe, and the Middle East. TETRA Technologies, Inc. was incorporated in 1981 and is headquartered in The Woodlands, Texas.

About Core Laboratories

Core Laboratories Inc. provides reservoir description and production enhancement services and products to the oil and gas industry in the United States, and internationally. It operates through Reservoir Description and Production Enhancement segments. The Reservoir Description segment includes the characterization of petroleum reservoir rock and reservoir fluid samples to enhance production and improve recovery of crude oil and gas from its clients' reservoirs. It offers laboratory-based analytical and field services to characterize properties of crude oil and oil delivered products; and proprietary and joint industry studies, as well as services that support carbon capture, utilization and storage, geothermal projects, and the evaluation and appraisal of mining activities. The Production Enhancement segment provides services and products relating to reservoir well completions, perforations, stimulations, production, and well abandonment. It offers integrated diagnostic services to evaluate and monitor the effectiveness of well completions and to develop solutions to improve the effectiveness of enhanced oil recovery projects. The company markets and sells its products through a combination of sales representatives, technical seminars, trade shows, and print advertising, as well as through distributors. Core Laboratories Inc. was founded in 1936 and is based in Houston, Texas.