Comparing TechnipFMC (NYSE:FTI) & NXT Energy Solutions (OTCMKTS:NSFDF)

NXT Energy Solutions (OTCMKTS:NSFDF) and TechnipFMC (NYSE:FTI) are both energy companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, risk, earnings and valuation.

Valuation & Earnings

This table compares NXT Energy Solutions and TechnipFMC”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NXT Energy Solutions	$11.70 million	2.72	-$1.66 million	($0.09)	-2.96
TechnipFMC	$9.93 billion	2.68	$963.90 million	$2.62	25.48

TechnipFMC has higher revenue and earnings than NXT Energy Solutions. NXT Energy Solutions is trading at a lower price-to-earnings ratio than TechnipFMC, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

26.2% of NXT Energy Solutions shares are owned by institutional investors. Comparatively, 96.6% of TechnipFMC shares are owned by institutional investors. 34.1% of NXT Energy Solutions shares are owned by insiders. Comparatively, 1.4% of TechnipFMC shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for NXT Energy Solutions and TechnipFMC, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NXT Energy Solutions	0	0	0	0	0.00
TechnipFMC	0	4	12	1	2.82

TechnipFMC has a consensus target price of $69.71, indicating a potential upside of 4.43%. Given TechnipFMC’s stronger consensus rating and higher possible upside, analysts plainly believe TechnipFMC is more favorable than NXT Energy Solutions.

Profitability

This table compares NXT Energy Solutions and TechnipFMC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NXT Energy Solutions	-312.44%	-91.43%	-66.88%
TechnipFMC	10.62%	34.06%	11.30%

Risk and Volatility

NXT Energy Solutions has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500. Comparatively, TechnipFMC has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500.

Summary

TechnipFMC beats NXT Energy Solutions on 12 of the 15 factors compared between the two stocks.

About NXT Energy Solutions

NXT Energy Solutions Inc., a technology company, provides services to the oil and gas industry through its proprietary stress field detection (SFD) technology worldwide. Its SFD technology, a remote sensing airborne survey system utilizes quantum-scale sensors to detect gravity field perturbations in an airborne survey method which can be used onshore and offshore to remotely identify traps and reservoirs with hydrocarbon and geothermal exploration potential. The company was formerly known as Energy Exploration Technologies Inc. and changed its name to NXT Energy Solutions Inc. in September 2008. NXT Energy Solutions Inc. was incorporated in 1994 and is headquartered in Calgary, Canada.

About TechnipFMC

TechnipFMC plc engages in the energy projects, technologies, and systems and services businesses in Europe, Central Asia, North America, Latin America, the Asia Pacific, Africa, the Middle East, and internationally. It operates through two segments: Subsea and Surface Technologies. The Subsea segment engages in the design, engineering, procurement, manufacturing, fabrication, installation, and life of field services for subsea systems, subsea field infrastructure, and subsea pipe systems used in oil and gas production and transportation. It provides subsea production and processing system; flexible pipe; subsea umbilicals, risers, and flowlines; vessels; robotics; well and asset services; and Subsea Studio for optimizing the development, execution, and operation of current and future subsea fields. The Surface Technologies segment designs, manufactures, and services products and systems used in land and shallow water exploration and production of crude oil and natural gas. This segment offers drilling; surface wellheads and production trees systems; iComplete, a pressure control system; fracturing tree and manifold systems; flexible pipes; safety and integrity systems, multiphase meter modules, in-line separation and processing systems, and standard pumps; well control and integrity systems; separation and processing systems; skid systems; and flow measurement and automation solutions. It also offers planning, testing and installation, commissioning, operations, replacement and upgrade, maintenance, storage, preservation, intervention, integrity, decommissioning, and abandonment; and supplies flowline products and services. TechnipFMC plc was founded in 1884 and is headquartered in Houston, Texas.