Basic Energy Services (NYSE: BAS) and FMC Technologies (NYSE:FTI) are both oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, profitabiliy, analyst recommendations, valuation and dividends.
Earnings and Valuation
This table compares Basic Energy Services and FMC Technologies’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Basic Energy Services||$692.45 million||0.59||-$25.85 million||N/A||N/A|
|FMC Technologies||$11.94 billion||1.06||$1.41 billion||N/A||N/A|
FMC Technologies has higher revenue and earnings than Basic Energy Services.
Volatility & Risk
Basic Energy Services has a beta of 2.74, suggesting that its share price is 174% more volatile than the S&P 500. Comparatively, FMC Technologies has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500.
This is a summary of current ratings and recommmendations for Basic Energy Services and FMC Technologies, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Basic Energy Services||0||7||3||0||2.30|
Basic Energy Services currently has a consensus price target of $26.50, indicating a potential upside of 60.41%. FMC Technologies has a consensus price target of $34.71, indicating a potential upside of 27.78%. Given Basic Energy Services’ higher possible upside, equities analysts plainly believe Basic Energy Services is more favorable than FMC Technologies.
This table compares Basic Energy Services and FMC Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Basic Energy Services||-44.40%||-71.68%||-21.65%|
Institutional and Insider Ownership
95.3% of Basic Energy Services shares are owned by institutional investors. Comparatively, 64.7% of FMC Technologies shares are owned by institutional investors. 11.1% of Basic Energy Services shares are owned by insiders. Comparatively, 0.9% of FMC Technologies shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
FMC Technologies beats Basic Energy Services on 8 of the 12 factors compared between the two stocks.
About Basic Energy Services
Basic Energy Services, Inc. provides a range of well site services in the United States to oil and natural gas drilling and producing companies, including completion and remedial services, fluid services, well servicing and contract drilling. The Company operates through the segment, which include Completion and Remedial Services, Fluid Services, Well Servicing and Contract Drilling. The Company’s operations are managed regionally and are concentrated in the United States onshore oil and natural gas producing regions located in Texas, New Mexico, Oklahoma, Arkansas, Kansas, Louisiana, Wyoming, North Dakota, Colorado, Utah, Montana, West Virginia, California, Ohio and Pennsylvania. Its operations are focused on liquids-rich basins, as well as natural gas-focused shale plays characterized by prolific reserves. It has a presence in the Permian Basin and the Bakken, Eagle Ford, Haynesville and Marcellus shales.
About FMC Technologies
FMC Technologies, Inc. is a global provider of technology solutions for the energy industry. The Company designs, manufactures and services a range of systems and products, including subsea production and processing systems, surface wellhead production systems, high pressure fluid control equipment, measurement solutions and marine loading systems. Its segments include Subsea Technologies, Surface Technologies and Energy Infrastructure. The Subsea Technologies segment designs and manufactures products and systems, and provides services used by oil and gas companies involved in deepwater exploration and production of crude oil and natural gas. The Surface Technologies segment designs and manufactures products and systems, and provides services used by oil and gas companies involved in land and offshore exploration, and production of crude oil and natural gas. The Energy Infrastructure segment’s products and services include Measurement Solutions, Loading Systems and Separation Systems.
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