Head-To-Head Comparison: KLX Energy Services (NASDAQ:KLXE) vs. Drilling Tools International (NASDAQ:DTI)

KLX Energy Services (NASDAQ:KLXE) and Drilling Tools International (NASDAQ:DTI) are both small-cap energy companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, institutional ownership, dividends and analyst recommendations.

Valuation and Earnings

This table compares KLX Energy Services and Drilling Tools International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KLX Energy Services	$709.30 million	0.07	-$53.00 million	($4.30)	-0.65
Drilling Tools International	$154.45 million	0.87	$3.01 million	($0.19)	-20.00

Drilling Tools International has lower revenue, but higher earnings than KLX Energy Services. Drilling Tools International is trading at a lower price-to-earnings ratio than KLX Energy Services, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

42.7% of KLX Energy Services shares are held by institutional investors. Comparatively, 2.8% of Drilling Tools International shares are held by institutional investors. 5.3% of KLX Energy Services shares are held by company insiders. Comparatively, 56.5% of Drilling Tools International shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility and Risk

KLX Energy Services has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500. Comparatively, Drilling Tools International has a beta of -0.38, meaning that its share price is 138% less volatile than the S&P 500.

Profitability

This table compares KLX Energy Services and Drilling Tools International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
KLX Energy Services	-11.90%	N/A	-16.89%
Drilling Tools International	-3.93%	1.12%	0.60%

Analyst Ratings

This is a summary of current ratings for KLX Energy Services and Drilling Tools International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KLX Energy Services	1	1	0	0	1.50
Drilling Tools International	1	0	0	1	2.50

Summary

Drilling Tools International beats KLX Energy Services on 9 of the 13 factors compared between the two stocks.

About KLX Energy Services

KLX Energy Services Holdings, Inc. provides drilling, completions, production, and well intervention services and products to the onshore oil and gas producing regions of the United States. The company operates through three segments: Southwest, Rocky Mountains, and Northeast/Mid-Con. It provides directional drilling services; downhole navigational and rental tools businesses and support services, including well planning, site supervision, accommodation rentals, and other drilling rentals; and various technologies, including gamma ray, azimuthal gamma ray, real-time continuous inclination and azimuth, rotary steerable, pressure-while-drilling, mode shifting, stick-slip and destructive dynamics, dynamic sequencing and real-time shock, and vibration modules. The company also offers coiled tubing and nitrogen services; wireline services, including pump down perforating, logging, and pipe recover; pressure control products and services; wellhead and hydraulic fracturing rental products and services; flowback and testing services; thru-tubing technologies and services; rig assist snubbing services; cementing products and services; acidizing and pressure pumping services; and downhole completion tools, such as toe sleeves, wet shoe cementing bypass subs, composite plugs, dissolvable plugs, liner hangers, stage cementing tools, inflatables, float and casing equipment, and retrievable completion tools. In addition, it provides production services comprising maintenance-related intervention services; production blow out preventers; mechanical wireline services; slick line services; hydro-testing services; premium tubulars; and other specialized production tools. Further, the company provides intervention services consisting of technicians and equipment that are focused on providing customers engineered solutions to downhole complications. KLX Energy Services Holdings, Inc. was incorporated in 2018 and is headquartered in Houston, Texas.

About Drilling Tools International

Drilling Tools International Corporation provides oilfield equipment and services to oil and natural gas sectors in North America, Europe, and the Middle East. It offers downhole tool rentals, machining, and inspection services to support the global drilling and wellbore construction industry. The company also provides products are bottom hole assembly components, such as stabilizers, subs, non-magnetic and steel drill collars, hole openers, and roller reamers, as well as drill pipe and drill pipe accessories; ancillary equipment and handling tools to support its rental platform, including float valves, ring gauges, tool baskets, lift bail, lift subs, mud magnets, elevators, bracket and bail assemblies, slips, tongs, stabbing guides and safety clamps; and blowout preventers, and pressure control accessory equipment. In addition, it offers tool rental services, which consists of rental, inspection, machining, and repair services; rents downhole drilling tools used in horizontal and directional drilling of oil and natural gas; rents kellys, pip joints, work strings; maintains a fleet of rental equipment consisting of drill collars, stabilizers, crossover subs, wellbore conditioning tools, drill pipe, hevi-wate drill pipe, and tubing; rents surface control equipment, such as blowout preventers and handling tools; and provides downhole products for producing wells. Drilling Tools International Corporation is headquartered in Houston, Texas.