Emerge Energy Services (NYSE: EMES) and Flotek Industries (NYSE:FTK) are both small-cap oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.
Volatility and Risk
Emerge Energy Services has a beta of 1.6, indicating that its stock price is 60% more volatile than the S&P 500. Comparatively, Flotek Industries has a beta of 1.75, indicating that its stock price is 75% more volatile than the S&P 500.
Valuation & Earnings
This table compares Emerge Energy Services and Flotek Industries’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Emerge Energy Services||$231.85 million||0.95||-$26.10 million||($1.14)||-6.40|
|Flotek Industries||$300.07 million||0.91||$2.51 million||($0.56)||-8.54|
Flotek Industries has higher revenue and earnings than Emerge Energy Services. Flotek Industries is trading at a lower price-to-earnings ratio than Emerge Energy Services, indicating that it is currently the more affordable of the two stocks.
This table compares Emerge Energy Services and Flotek Industries’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Emerge Energy Services||-14.29%||-170.44%||-25.17%|
This is a breakdown of current recommendations for Emerge Energy Services and Flotek Industries, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Emerge Energy Services||0||4||4||0||2.50|
Emerge Energy Services currently has a consensus target price of $17.00, indicating a potential upside of 132.88%. Given Emerge Energy Services’ higher possible upside, research analysts plainly believe Emerge Energy Services is more favorable than Flotek Industries.
Institutional and Insider Ownership
29.9% of Emerge Energy Services shares are held by institutional investors. Comparatively, 97.3% of Flotek Industries shares are held by institutional investors. 5.5% of Flotek Industries shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Flotek Industries beats Emerge Energy Services on 10 of the 13 factors compared between the two stocks.
Emerge Energy Services Company Profile
Emerge Energy Services LP owns, operates, acquires and develops a portfolio of energy service assets. The Company operates through Sand segment. The Company conducts its Sand operations through its subsidiary, Superior Silica Sands LLC (SSS). The Company’s Sand business mines, processes and distributes silica sand, an input for the hydraulic fracturing of oil and gas wells. As of December 31, 2016, its Wisconsin facilities consisted of three dry plants located in Arland, Barron and New Auburn, Wisconsin, with a total permitted capacity of 6.3 million finished tons per year, and five wet plants and mine complexes. As of December 31, 2016, its dry plant in Kosse, Texas, had a capacity of 600,000 tons per year that is supplied by a separate mine and wet plant that processes local Texas sand. As of December 31, 2016, the Company also had 14 transload facilities located throughout North America in the basins where it delivers its sand, as well as a fleet of 5,573 railcars.
Flotek Industries Company Profile
Flotek Industries, Inc. is a technology-driven company. The Company develops and supplies chemistry and services to the oil and gas industries, and compounds to companies that make cleaning products, cosmetics, food and beverages, and other products that are sold in consumer and industrial markets. The Company operates through two segments: Energy Chemistry Technologies (ECT), and Consumer and Industrial Chemistry Technologies (CICT). The ECT segment designs, develops, manufactures, packages and markets chemistries for use in oil and gas well drilling, cementing, completion and stimulation activities. Its ECT segment’s services include Reservoir Characterization, Polymer Conformance and Logistics Management. The CICT segment sources citrus oil domestically and internationally, and processor of citrus oils in the world. The CICT segment designs, develops and manufactures products that are sold to companies in the flavor and fragrance industries and specialty chemical industry.
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