Fairmount Santrol (NYSE: FMSA) and NCS Multistage (NASDAQ:NCSM) are both small-cap industrial products companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, earnings, risk, valuation, analyst recommendations and institutional ownership.
This table compares Fairmount Santrol and NCS Multistage’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This table compares Fairmount Santrol and NCS Multistage’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Fairmount Santrol||$535.01 million||1.97||-$140.19 million||$0.06||78.50|
|NCS Multistage||$98.47 million||6.60||-$17.92 million||$0.09||164.44|
NCS Multistage has lower revenue, but higher earnings than Fairmount Santrol. Fairmount Santrol is trading at a lower price-to-earnings ratio than NCS Multistage, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and price targets for Fairmount Santrol and NCS Multistage, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Fairmount Santrol presently has a consensus price target of $5.95, indicating a potential upside of 26.26%. NCS Multistage has a consensus price target of $25.33, indicating a potential upside of 71.17%. Given NCS Multistage’s stronger consensus rating and higher possible upside, analysts clearly believe NCS Multistage is more favorable than Fairmount Santrol.
Institutional and Insider Ownership
73.2% of Fairmount Santrol shares are owned by institutional investors. Comparatively, 94.0% of NCS Multistage shares are owned by institutional investors. 9.8% of Fairmount Santrol shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
NCS Multistage beats Fairmount Santrol on 9 of the 13 factors compared between the two stocks.
About Fairmount Santrol
Fairmount Santrol Holdings Inc. is a provider of sand-based proppant solutions. The Company operates through two segments: Proppant Solutions, and Industrial & Recreational (I&R) Products. Its Proppant Solutions segment provides sand-based proppants for use in hydraulic fracturing operations throughout the United States and Canada, Argentina, Mexico, China, northern Europe and the United Arab Emirates. Its I&R segment provides raw, coated, and custom blended sands to the foundry, building products, glass, turf and landscape, and filtration industries in North America. Its asset base includes approximately 800 million tons of proven and probable mineral reserves. As of March 2017, the Company had 10 sand processing facilities with 16.8 million tons of annual sand processing capacity. Its coating facilities include operations in Mexico, Denmark and China, through which it serves international oil and gas markets.
About NCS Multistage
NCS Multistage Holdings, Inc. is a provider of engineered products and support services for oil and natural gas well completions and field development strategies. The Company’s products and services include Multistage Unlimited, casing-installed sliding sleeves, downhole frac isolation assembly, AirLock casing buoyancy system and liner hanger systems. The Company provides products and services primarily to exploration and production (E&P) companies for use in onshore wells, predominantly wells that have been drilled with horizontal laterals in unconventional oil and natural gas formations. The Company’s products and services are utilized in oil and natural gas basins throughout North America and in selected international markets, including Argentina, China and Russia.
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