Critical Analysis: CES Energy Solutions (OTCMKTS:CESDF) & Hunting (OTCMKTS:HNTIF)

Hunting (OTCMKTS:HNTIF) and CES Energy Solutions (OTCMKTS:CESDF) are both energy companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, earnings, profitability, dividends, valuation and analyst recommendations.

Insider and Institutional Ownership

46.6% of Hunting shares are held by institutional investors. Comparatively, 42.9% of CES Energy Solutions shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Hunting and CES Energy Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hunting	N/A	N/A	N/A
CES Energy Solutions	N/A	N/A	N/A

Earnings and Valuation

This table compares Hunting and CES Energy Solutions”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hunting	N/A	N/A	N/A	$0.76	6.53
CES Energy Solutions	N/A	N/A	N/A	$0.29	29.02

Hunting is trading at a lower price-to-earnings ratio than CES Energy Solutions, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations and price targets for Hunting and CES Energy Solutions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hunting	0	1	0	0	2.00
CES Energy Solutions	0	0	4	1	3.20

Dividends

Hunting pays an annual dividend of $0.22 per share and has a dividend yield of 4.3%. CES Energy Solutions pays an annual dividend of $0.28 per share and has a dividend yield of 3.4%. Hunting pays out 28.3% of its earnings in the form of a dividend. CES Energy Solutions pays out 97.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Hunting is clearly the better dividend stock, given its higher yield and lower payout ratio.

About Hunting

Hunting PLC, together with its subsidiaries, manufactures components, technology systems, and precision parts worldwide. It operates in five segments: Hunting Titan; North America; Subsea Technologies; EMEA; and Asia Pacific. The company designs and manufactures perforating systems, energetics, instrumentation, and associated hardware; connection technology and OCTG; subsea technologies; supplies highly engineered tubular components, hollow rotating shafts, very accurate deep hole drilling, plus complex turned, and milled profiles; well intervention equipment; and well test and process systems. It also manufactures electronic parts for the energy, medical, defense, and aerospace sectors; provides trenchless technologies, which include drill pipe, tooling products, and conversion roadmaps; and innovative MWD solutions for gyro, steering tool, and running gear; and organic oil recovery technology. The company serves its products to energy, aerospace and defense, telecommunications, utilities, commercial, medical, and transportation industries. Hunting PLC was founded in 1874 and is headquartered in London, the United Kingdom.

About CES Energy Solutions

CES Energy Solutions Corp., together with its subsidiaries, engages in design, implement, and manufacture of advanced consumable fluids and specialty chemicals in the United States and Canada. The company provides solutions for drill-bit, point of completion and stimulation, wellhead and pump-jack, and pipeline and midstream markets. Its solutions include corrosion inhibitors, demulsifiers, H2S scavengers, paraffin control products, surfactants, scale inhibitors, biocides, and other specialty products. The company also designs and implements drilling fluid systems and completion solutions for oil and natural gas producers; designs and manufactures production and specialty chemicals for use in the oil and natural gas production and industrial markets; designs, blends, and sells specialty drilling fluids; designs, blends, and sells simulation and production chemicals for oil and gas producers; and operates trucks and trailers to transport drilling fluids to operators in the oil and gas industry. In addition, it provides environmental consulting, water management and transfer services, and drilling fluids waste disposal services; and laboratory services. The company was formerly known as Canadian Energy Services & Technology Corp. and changed its name to CES Energy Solutions Corp. in June 2017. CES Energy Solutions Corp. was incorporated in 1986 and is headquartered in Calgary, Canada.