Oil States International (NYSE:OIS) and Enerflex (OTCMKTS:ENRFF) Critical Review

Enerflex (OTCMKTS:ENRFF) and Oil States International (NYSE:OIS) are both energy companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, earnings, dividends and institutional ownership.

Institutional & Insider Ownership

71.0% of Enerflex shares are held by institutional investors. Comparatively, 97.4% of Oil States International shares are held by institutional investors. 7.6% of Oil States International shares are held by 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.

Analyst Recommendations

This is a summary of current recommendations for Enerflex and Oil States International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enerflex	0	0	1	0	3.00
Oil States International	1	1	2	0	2.25

Oil States International has a consensus price target of $11.33, suggesting a potential upside of 28.79%. Given Oil States International’s higher probable upside, analysts clearly believe Oil States International is more favorable than Enerflex.

Profitability

This table compares Enerflex and Oil States International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Enerflex	N/A	N/A	N/A
Oil States International	-16.78%	4.28%	2.87%

Valuation and Earnings

This table compares Enerflex and Oil States International”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enerflex	N/A	N/A	N/A	$0.70	28.36
Oil States International	$668.99 million	0.79	-$109.38 million	($1.89)	-4.66

Enerflex has higher earnings, but lower revenue than Oil States International. Oil States International is trading at a lower price-to-earnings ratio than Enerflex, indicating that it is currently the more affordable of the two stocks.

Summary

Oil States International beats Enerflex on 7 of the 11 factors compared between the two stocks.

About Enerflex

Enerflex Ltd. supplies natural gas compression, oil and gas processing, refrigeration systems, energy transition solutions, and electric power generation equipment to the oil and natural gas industry. The company provides custom and standard compression packages for reciprocating and screw compressor applications; and designs, engineers, manufactures, constructs, and installs modular natural gas processing equipment, refrigeration systems, and electric power solutions, as well as engages in re-engineering, re-configuration, and re-packaging of compressors for various field applications; and modular processing equipment and waste gas systems for natural gas facilities. It also offers after-market services, parts distribution, operations and maintenance solutions, equipment optimization and maintenance programs, manufacturer warranties, exchange components, long-term service agreements, and technical services. In addition, the company rents natural gas compressors totaling approximately 800,000 horsepower. It serves small to large independent producers, integrated oil and natural gas companies, midstream and petrochemical companies, power generation companies, users of natural gas-fired electric power, and carbon capture players in Canada, the United States, Argentina, Bolivia, Brazil, Colombia, Mexico, the United Kingdom, Bahrain Kuwait, Oman, the United Arab Emirates, Australia, New Zealand, Indonesia, Malaysia, and Thailand. Enerflex Ltd. was founded in 1980 and is headquartered in Calgary, Canada.

About Oil States International

Oil States International, Inc., through its subsidiaries, provides engineered capital equipment and products for the energy, industrial, and military sectors worldwide. The company operates through three segments: Well Site Services, Downhole Technologies, and Offshore/Manufactured Products. The Well Site Services segment offers a range of equipment and services that are used to drill for, establish, and maintain the flow of oil and natural gas from a well throughout its lifecycle. It also provides wireline support, frac stacks, isolation tools, downhole and extended reach activity, well testing and flowback operations, sand control, and land drilling services. The Downhole Technologies segment provides oil and gas perforation systems, and downhole tools in support of completion, intervention, wireline, and well abandonment operations. This segment also designs, manufactures, and markets its consumable engineered products to oilfield service, and exploration and production companies. The Offshore/Manufactured Products segment designs, manufactures, and markets capital equipment utilized on floating production systems, subsea pipeline infrastructure, and offshore drilling rigs and vessels. Its products include flexible bearings, advanced connector systems, high-pressure riser systems, managed pressure drilling systems, deepwater mooring systems, cranes, subsea pipeline products, and blow-out preventer stack integration products. This segment also provides short-cycle products, such as valves, elastomers, and other specialty products that are used in the land-based drilling and completion markets; and other products for use in industrial, military, alternative energy, and other applications. In addition, it offers specialty welding, fabrication, cladding and machining, offshore installation, and inspection and repair services. The company was incorporated in 1995 and is headquartered in Houston, Texas.