Critical Analysis: Oil States International (NYSE:OIS) & Noble (NYSE:NE)

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

Risk & Volatility

Noble has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, Oil States International has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500.

Valuation and Earnings

This table compares Noble and Oil States International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Noble	$3.29 billion	2.09	$216.72 million	$0.93	46.20
Oil States International	$645.67 million	0.74	-$109.38 million	($1.89)	-4.21

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

Institutional & Insider Ownership

68.1% of Noble shares are held by institutional investors. Comparatively, 97.4% of Oil States International shares are held by institutional investors. 1.5% of Noble shares are held by company insiders. Comparatively, 7.6% of Oil States International shares are held by company 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 Noble and Oil States International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Noble	4.88%	1.93%	1.18%
Oil States International	-16.78%	4.28%	2.87%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Noble and Oil States International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Noble	0	6	2	1	2.44
Oil States International	1	1	2	0	2.25

Noble currently has a consensus price target of $45.29, indicating a potential upside of 5.40%. Oil States International has a consensus price target of $11.67, indicating a potential upside of 46.66%. Given Oil States International’s higher probable upside, analysts clearly believe Oil States International is more favorable than Noble.

Summary

Noble beats Oil States International on 8 of the 14 factors compared between the two stocks.

About Noble

Noble Corp. Plc engages in the provision offshore drilling services for oil and gas industry. It focuses on a balanced fleet of floating and jackup rigs and the deployment of drilling rigs in oil and gas basins around the world. The company was founded by Lloyd Noble and Art Olson in 1921 and is headquartered in London, the United Kingdom.

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.