Analyzing Dawson Geophysical (NASDAQ:DWSN) & Smart Sand (NASDAQ:SND)

Dawson Geophysical (NASDAQ:DWSN) and Smart Sand (NASDAQ:SND) are both small-cap energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, valuation, dividends and analyst recommendations.

Insider and Institutional Ownership

7.9% of Dawson Geophysical shares are held by institutional investors. Comparatively, 35.2% of Smart Sand shares are held by institutional investors. 0.3% of Dawson Geophysical shares are held by insiders. Comparatively, 33.5% of Smart Sand shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Dawson Geophysical and Smart Sand’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dawson Geophysical	4.91%	26.74%	9.15%
Smart Sand	6.07%	N/A	N/A

Analyst Ratings

This is a breakdown of recent ratings and price targets for Dawson Geophysical and Smart Sand, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dawson Geophysical	0	1	0	0	2.00
Smart Sand	0	1	0	0	2.00

Risk & Volatility

Dawson Geophysical has a beta of -0.17, indicating that its share price is 117% less volatile than the S&P 500. Comparatively, Smart Sand has a beta of 0.27, indicating that its share price is 73% less volatile than the S&P 500.

Earnings and Valuation

This table compares Dawson Geophysical and Smart Sand”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dawson Geophysical	$75.62 million	1.84	-$1.94 million	$0.15	29.87
Smart Sand	$330.15 million	0.62	$1.35 million	$0.55	8.67

Smart Sand has higher revenue and earnings than Dawson Geophysical. Smart Sand is trading at a lower price-to-earnings ratio than Dawson Geophysical, indicating that it is currently the more affordable of the two stocks.

Summary

Smart Sand beats Dawson Geophysical on 7 of the 11 factors compared between the two stocks.

About Dawson Geophysical

Dawson Geophysical Company provides onshore seismic data acquisition and processing services in the United States and Canada. The company acquires and processes 2-D, 3-D, and multi-component seismic data for its clients, including oil and gas companies, and independent oil and gas operators, as well as providers of multi-client data libraries and carbon capture sequestration projects. Its seismic crews supply seismic data primarily to companies engaged in the exploration and development of oil and natural gas on land and in land-to-water transition areas, as well as potash mining industry. The company was founded in 1952 and is headquartered in Midland, Texas. Dawson Geophysical Company is a subsidiary of Wilks Brothers, LLC.

About Smart Sand

Smart Sand, Inc., an integrated frac and industrial sand supply and services company, engages in the excavation, processing, and sale of sands or proppant for use in hydraulic fracturing operations in the oil and gas industry in the United States. It also provides proppant logistics services; and wellsite storage solutions through SmartSystems products and services. The company sells its products primarily to oil and natural gas exploration and production companies, oilfield service companies, and industrial manufacturers. Smart Sand, Inc. was incorporated in 2011 and is headquartered in Spring, Texas.