Analyzing Ranger Energy Services (NYSE:RNGR) & Petrofac (OTCMKTS:POFCY)

Petrofac (OTCMKTS:POFCY) and Ranger Energy Services (NYSE:RNGR) are both small-cap energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, dividends, institutional ownership, analyst recommendations and earnings.

Analyst Ratings

This is a summary of recent ratings and price targets for Petrofac and Ranger Energy Services, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Petrofac	0	0	0	0	0.00
Ranger Energy Services	0	2	1	0	2.33

Ranger Energy Services has a consensus target price of $13.00, suggesting a potential downside of 18.30%. Given Petrofac’s higher possible upside, equities analysts clearly believe Petrofac is more favorable than Ranger Energy Services.

Profitability

This table compares Petrofac and Ranger Energy Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Petrofac	N/A	N/A	N/A
Ranger Energy Services	2.72%	5.60%	4.05%

Volatility and Risk

Petrofac has a beta of 2.84, indicating that its stock price is 184% more volatile than the S&P 500. Comparatively, Ranger Energy Services has a beta of 0.19, indicating that its stock price is 81% less volatile than the S&P 500.

Insider & Institutional Ownership

68.1% of Ranger Energy Services shares are owned by institutional investors. 2.8% of Ranger Energy Services shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Petrofac and Ranger Energy Services”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Petrofac	$2.50 billion	0.00	-$505.00 million	N/A	N/A
Ranger Energy Services	$571.10 million	0.60	$18.40 million	$0.65	24.48

Ranger Energy Services has lower revenue, but higher earnings than Petrofac.

Summary

Ranger Energy Services beats Petrofac on 8 of the 11 factors compared between the two stocks.

About Petrofac

Petrofac Limited designs, builds, manages, and maintains infrastructure for the energy industries in the United Kingdom, Algeria, Thailand, Oman, Kuwait, Iraq, the United Arab Emirates, the Netherlands, and internationally. It operates through three segments: Engineering & Construction (E&C); Asset Solutions; and Integrated Energy Services (IES). The E&C segment provides onshore and offshore engineering, procurement, construction, installation, and commissioning services. The Asset Solutions segment offers concept, feasibility, and front-end engineering design services, as well as manages and maintains onshore and offshore operations. The IES segment focuses on delivering value from the existing asset portfolio. The company was founded in 1981 and is based in St Helier, Jersey.

About Ranger Energy Services

Ranger Energy Services, Inc. provides onshore high specification well service rigs, wireline services, and complementary services to exploration and production companies in the United States. It operates through three segments: High Specification Rigs, Wireline Services, and Processing Solutions and Ancillary Services. The High Specification Rigs segment offers well service rigs and complementary equipment and services to facilitate operations throughout the lifecycle of a well; and well maintenance services. This segment also has a fleet of 402 well service rigs. The Wireline Services segment provides wireline production and intervention services to provide information to identify and resolve well production problems through cased hole logging, perforating, mechanical, and pipe recovery services; wireline completion services that are used primarily for pump down perforating operations to create perforations or entry holes through the production casing; and pumping services. This segment also has a fleet of 66 wireline units and 29 high-pressure pump trucks. The Processing Solutions and Ancillary Services segment rents well service-related equipment consisting of fluid pumps, power swivels, well control packages, hydraulic catwalks, frac tanks, pipe racks, and pipe handling tools; and coiled tubing, decommissioning, and snubbing services, as well as provides proprietary and modular equipment for the processing of natural gas streams. This segment also engages in the rental, installation, commissioning, start up, operation, and maintenance of mechanical refrigeration units, nitrogen gas liquid stabilizer units, nitrogen gas liquid storage units, and related equipment. Ranger Energy Services, Inc. was incorporated in 2017 and is headquartered in Houston, Texas.