Newpark Resources (NYSE: NR) and Ferrellgas Partners (NYSE:FGP) are both small-cap oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, risk, institutional ownership, profitability, analyst recommendations and valuation.
Ferrellgas Partners pays an annual dividend of $0.40 per share and has a dividend yield of 9.8%. Newpark Resources does not pay a dividend. Ferrellgas Partners pays out -66.7% of its earnings in the form of a dividend.
This table compares Newpark Resources and Ferrellgas Partners’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Newpark Resources||$471.50 million||1.68||-$40.71 million||$0.04||231.31|
|Ferrellgas Partners||$1.93 billion||0.21||-$54.20 million||($0.60)||-6.80|
Newpark Resources has higher earnings, but lower revenue than Ferrellgas Partners. Ferrellgas Partners is trading at a lower price-to-earnings ratio than Newpark Resources, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
6.3% of Ferrellgas Partners shares are owned by institutional investors. 4.9% of Newpark Resources shares are owned by company insiders. Comparatively, 0.5% of Ferrellgas Partners shares are owned 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.
This is a summary of current ratings and price targets for Newpark Resources and Ferrellgas Partners, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Newpark Resources presently has a consensus target price of $10.00, suggesting a potential upside of 8.11%. Ferrellgas Partners has a consensus target price of $5.00, suggesting a potential upside of 22.55%. Given Ferrellgas Partners’ higher possible upside, analysts plainly believe Ferrellgas Partners is more favorable than Newpark Resources.
This table compares Newpark Resources and Ferrellgas Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
Newpark Resources has a beta of 1.58, indicating that its share price is 58% more volatile than the S&P 500. Comparatively, Ferrellgas Partners has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500.
Newpark Resources beats Ferrellgas Partners on 10 of the 16 factors compared between the two stocks.
Newpark Resources Company Profile
Newpark Resources, Inc. is a supplier providing products and services primarily to the oil and gas exploration and production (E&P) industry. The Company’s segments include Fluids Systems, and Mats and Integrated Services. The Fluids Systems segment provides drilling fluids products and technical services to customers in the North America; Europe, the Middle East and Africa; Latin America, and Asia Pacific regions. The Mats and Integrated Services segment provides composite mat rentals, as well as location construction and related site services, to customers at well, production, transportation and refinery locations in the United States. It manufactures and sells composite mats to customers outside of the United States, and to domestic customers outside of the oil and gas exploration market. The Fluids Systems segment offers customized solutions for technical drilling projects involving subsurface conditions, such as horizontal, directional, geologically deep or deep water drilling.
Ferrellgas Partners Company Profile
Ferrellgas Partners, L.P. is engaged in the retail distribution of propane and related equipment sales, and midstream operations, which include crude oil logistics. The Company’s segments include propane and related equipment sales, midstream operations-crude oil logistics, and corporate and other. The propane and related equipment sales segment consists of the distribution of propane and related equipment and supplies. The midstream operations-crude oil logistics segment is engaged in providing crude oil transportation and logistics services. The corporate and other segment includes midstream operations-water solutions. The Company’s two subsidiaries include Ferrellgas Partners Finance Corp. and the operating partnership. Its general partner performs all management functions for the Company and holds general partner interest in Ferrellgas Partners and the operating partnership. It is a distributor of propane and related equipment and supplies to customers in the United States.
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