Flotek Industries (NYSE: FTK) and Solaris Oilfield Infrastructure (NYSE:SOI) are both small-cap energy companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, earnings, risk and dividends.
This table compares Flotek Industries and Solaris Oilfield Infrastructure’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Solaris Oilfield Infrastructure||18.84%||10.16%||9.23%|
This is a summary of current ratings and target prices for Flotek Industries and Solaris Oilfield Infrastructure, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Solaris Oilfield Infrastructure||0||1||12||0||2.92|
Solaris Oilfield Infrastructure has a consensus target price of $19.50, suggesting a potential upside of 7.50%. Given Solaris Oilfield Infrastructure’s higher probable upside, analysts clearly believe Solaris Oilfield Infrastructure is more favorable than Flotek Industries.
Institutional and Insider Ownership
89.1% of Flotek Industries shares are owned by institutional investors. Comparatively, 67.0% of Solaris Oilfield Infrastructure shares are owned by institutional investors. 5.5% of Flotek Industries shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Flotek Industries and Solaris Oilfield Infrastructure’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Flotek Industries||$317.10 million||1.13||-$27.39 million||($0.23)||-27.48|
|Solaris Oilfield Infrastructure||$18.15 million||43.66||$2.80 million||$0.22||82.45|
Solaris Oilfield Infrastructure has lower revenue, but higher earnings than Flotek Industries. Flotek Industries is trading at a lower price-to-earnings ratio than Solaris Oilfield Infrastructure, indicating that it is currently the more affordable of the two stocks.
Solaris Oilfield Infrastructure beats Flotek Industries on 9 of the 13 factors compared between the two stocks.
About Flotek Industries
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.
About Solaris Oilfield Infrastructure
Solaris Oilfield Infrastructure, Inc. manufactures and provides its mobile proppant management systems that unload, store and deliver proppant at oil and natural gas well sites. The Company offers its services to oil and natural gas exploration and production (E&P) companies, as well as oilfield service companies. Its mobile proppant system is designed to address the challenges associated with transferring large quantities of proppant to the well site, including the cost and management of last mile logistics. Its systems provide 2.5 million pounds of proppant storage capacity. The Company manufactures its systems at its facility in Early, Texas, The Company’s system provides Streamlined last mile logistics and Improved execution to meet completion designs. Its systems provide triple the storage capacity, such as trailer-mounted, hydraulically powered storage bins. Its integrated PropView system delivers real-time proppant inventory and consumption levels.
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