Tetra Technologies (NYSE:TTI) and Tidewater (NYSE:TDW) Critical Contrast

Tetra Technologies (NYSE:TTI) and Tidewater (NYSE:TDW) are both energy companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.

Insider and Institutional Ownership

70.2% of Tetra Technologies shares are owned by institutional investors. Comparatively, 95.1% of Tidewater shares are owned by institutional investors. 6.3% of Tetra Technologies shares are owned by insiders. Comparatively, 5.9% of Tidewater shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Tetra Technologies and Tidewater’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tetra Technologies	1.15%	10.50%	4.59%
Tidewater	22.16%	8.79%	4.92%

Risk and Volatility

Tetra Technologies has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, Tidewater has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500.

Valuation and Earnings

This table compares Tetra Technologies and Tidewater”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tetra Technologies	$630.93 million	1.62	$3.01 million	$0.05	153.92
Tidewater	$1.35 billion	2.77	$334.66 million	$5.97	12.56

Tidewater has higher revenue and earnings than Tetra Technologies. Tidewater is trading at a lower price-to-earnings ratio than Tetra Technologies, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Tetra Technologies and Tidewater, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tetra Technologies	0	2	3	0	2.60
Tidewater	0	6	2	1	2.44

Tetra Technologies currently has a consensus target price of $12.83, indicating a potential upside of 66.75%. Tidewater has a consensus target price of $89.33, indicating a potential upside of 19.13%. Given Tetra Technologies’ stronger consensus rating and higher possible upside, research analysts plainly believe Tetra Technologies is more favorable than Tidewater.

Summary

Tidewater beats Tetra Technologies on 8 of the 15 factors compared between the two stocks.

About Tetra Technologies

TETRA Technologies, Inc., together with its subsidiaries, operates as an energy services and solutions company. It operates through two segments, Completion Fluids & Products Division and Water & Flowback Services. The Completion Fluids & Products segment manufactures and markets clear brine fluids, additives, and associated products and services to the oil and gas industry for use in well drilling, completion, and workover operations in the United States, as well as in Latin America, Europe, Asia, the Middle East, and Africa. This segment also markets liquid and dry calcium chloride products; and TETRA PureFlow ultra-pure zinc bromide to battery technology companies. The Water & Flowback Services segment provides water management services for onshore oil and gas operators. This segment also offers frac flowback, production well testing, and other associated services in oil and gas producing regions in the United States, as well as in various basins in Latin America, Africa, Europe, and the Middle East. TETRA Technologies, Inc. was incorporated in 1981 and is headquartered in The Woodlands, Texas.

About Tidewater

Tidewater Inc., together with its subsidiaries, provides offshore support vessels and marine support services to the offshore energy industry through the operation of a fleet of marine service vessels worldwide. It provides services in support of offshore oil and gas exploration, field development, and production, as well as windfarm development and maintenance, including towing of and anchor handling for mobile offshore drilling units; transporting supplies and personnel necessary to sustain drilling, workover, and production activities; offshore construction, and seismic and subsea support; geotechnical survey support for windfarm construction; and various specialized services, such as pipe and cable laying. The company operates anchor handling towing supply vessels, platform supply vessels, crew boats, utility vessels, and offshore tugs. The company serves integrated and independent oil and gas exploration, field development, and production companies; mid-sized and smaller independent exploration and production companies; foreign government-owned or government-controlled organizations, and other related companies; offshore drilling contractors; and other companies, such as offshore construction, windfarm development, diving, and well stimulation companies. Tidewater Inc. was incorporated in 1956 and is headquartered in Houston, Texas.