Financial Analysis: Bristow Group (NYSE:VTOL) versus Ranger Energy Services (NYSE:RNGR)

Ranger Energy Services (NYSE:RNGR) and Bristow Group (NYSE:VTOL) are both small-cap energy companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.

Dividends

Ranger Energy Services pays an annual dividend of $0.24 per share and has a dividend yield of 1.4%. Bristow Group pays an annual dividend of $0.50 per share and has a dividend yield of 1.2%. Ranger Energy Services pays out 40.0% of its earnings in the form of a dividend. Bristow Group pays out 14.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Ranger Energy Services has raised its dividend for 2 consecutive years. Ranger Energy Services is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of current ratings for Ranger Energy Services and Bristow Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ranger Energy Services	0	2	1	0	2.33
Bristow Group	0	1	3	0	2.75

Ranger Energy Services presently has a consensus price target of $20.00, indicating a potential upside of 19.75%. Bristow Group has a consensus price target of $60.00, indicating a potential upside of 43.51%. Given Bristow Group’s stronger consensus rating and higher probable upside, analysts plainly believe Bristow Group is more favorable than Ranger Energy Services.

Profitability

This table compares Ranger Energy Services and Bristow Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ranger Energy Services	2.36%	4.87%	3.33%
Bristow Group	6.66%	9.82%	4.45%

Volatility and Risk

Ranger Energy Services has a beta of 0.14, suggesting that its share price is 86% less volatile than the S&P 500. Comparatively, Bristow Group has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500.

Earnings and Valuation

This table compares Ranger Energy Services and Bristow Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ranger Energy Services	$546.90 million	0.71	$12.30 million	$0.60	27.84
Bristow Group	$1.49 billion	0.83	$129.07 million	$3.47	12.05

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

Insider and Institutional Ownership

68.1% of Ranger Energy Services shares are owned by institutional investors. Comparatively, 93.3% of Bristow Group shares are owned by institutional investors. 2.8% of Ranger Energy Services shares are owned by company insiders. Comparatively, 12.8% of Bristow Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Bristow Group beats Ranger Energy Services on 14 of the 17 factors compared between the two stocks.

About Ranger Energy Services

Ranger Energy Services, Inc. provides onshore high specification well service rigs, wireline services, and complementary services to exploration and production companies in the United States. It operates through three segments: High Specification Rigs, Wireline Services, and Processing Solutions and Ancillary Services. The High Specification Rigs segment offers well service rigs and complementary equipment and services to facilitate operations throughout the lifecycle of a well; and well maintenance services. This segment also has a fleet of 402 well service rigs. The Wireline Services segment provides wireline production and intervention services to provide information to identify and resolve well production problems through cased hole logging, perforating, mechanical, and pipe recovery services; wireline completion services that are used primarily for pump down perforating operations to create perforations or entry holes through the production casing; and pumping services. This segment also has a fleet of 66 wireline units and 29 high-pressure pump trucks. The Processing Solutions and Ancillary Services segment rents well service-related equipment consisting of fluid pumps, power swivels, well control packages, hydraulic catwalks, frac tanks, pipe racks, and pipe handling tools; and coiled tubing, decommissioning, and snubbing services, as well as provides proprietary and modular equipment for the processing of natural gas streams. This segment also engages in the rental, installation, commissioning, start up, operation, and maintenance of mechanical refrigeration units, nitrogen gas liquid stabilizer units, nitrogen gas liquid storage units, and related equipment. Ranger Energy Services, Inc. was incorporated in 2017 and is headquartered in Houston, Texas.

About Bristow Group

Bristow Group Inc. provides vertical flight solutions. The company primarily offers aviation services to integrated, national, and independent offshore energy companies and government agencies. It also provides personnel transportation, search and rescue, medevac, ad hoc helicopter, fixed wing transportation, unmanned systems, and ad-hoc helicopter services, as well as logistical and maintenance support, training services, and flight and maintenance crews. The company has a fleet of aircrafts. It has customers in Australia, Brazil, Canada, Chile, the Dutch Caribbean, the Falkland Islands, India, Ireland, the Kingdom of Saudi Arabia, Mexico, the Netherlands, Nigeria, Norway, Spain, Suriname, Trinidad, the United Kingdom, and United States. Bristow Group Inc. is based in Houston, Texas.