Matrix Service (NASDAQ: MTRX) and National-Oilwell Varco (NYSE:NOV) are both oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, institutional ownership, risk, dividends, earnings and profitability.
Risk & Volatility
Matrix Service has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, National-Oilwell Varco has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500.
91.5% of Matrix Service shares are held by institutional investors. Comparatively, 93.6% of National-Oilwell Varco shares are held by institutional investors. 2.5% of Matrix Service shares are held by company insiders. Comparatively, 0.6% of National-Oilwell Varco 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.
National-Oilwell Varco pays an annual dividend of $0.20 per share and has a dividend yield of 0.5%. Matrix Service does not pay a dividend. National-Oilwell Varco pays out -15.7% of its earnings in the form of a dividend.
This is a breakdown of current recommendations and price targets for Matrix Service and National-Oilwell Varco, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
National-Oilwell Varco has a consensus target price of $37.11, indicating a potential downside of 0.55%. Given National-Oilwell Varco’s stronger consensus rating and higher probable upside, analysts plainly believe National-Oilwell Varco is more favorable than Matrix Service.
This table compares Matrix Service and National-Oilwell Varco’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Matrix Service and National-Oilwell Varco’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Matrix Service||$1.20 billion||0.35||-$180,000.00||($0.25)||-62.20|
|National-Oilwell Varco||$7.30 billion||1.94||-$237.00 million||($1.27)||-29.38|
Matrix Service has higher earnings, but lower revenue than National-Oilwell Varco. Matrix Service is trading at a lower price-to-earnings ratio than National-Oilwell Varco, indicating that it is currently the more affordable of the two stocks.
National-Oilwell Varco beats Matrix Service on 12 of the 16 factors compared between the two stocks.
About Matrix Service
Matrix Service Company provides engineering, fabrication, infrastructure, construction and maintenance services primarily to the oil, gas, power, petrochemical, industrial, mining and minerals markets. The Company’s segments include Electrical Infrastructure, Oil Gas & Chemical, Storage Solutions and Industrial. The Electrical Infrastructure segment primarily includes construction and maintenance services to a range of power generation facilities, such as combined cycle plants, natural gas fired power stations and renewable energy installations. The Oil Gas & Chemical segment includes turnaround activities, plant maintenance services and construction in the downstream petroleum industry. The Storage Solutions segment includes new construction of crude and refined products aboveground storage tanks (ASTs), as well as planned and emergency maintenance services. The Industrial segment includes construction and maintenance work in the iron and steel and mining and minerals industries.
About National-Oilwell Varco
National Oilwell Varco, Inc. is an oilfield equipment manufacturer and technology provider. The Company operates through four segments: Rig Systems, Rig Aftermarket, Wellbore Technologies and Completion & Production Solutions. The Rig Systems segment makes and supports the capital equipment and integrated systems needed to drill oil and gas wells on land and offshore. The Rig Systems segment designs, manufactures and sells land rigs, offshore drilling equipment packages, and drilling rig components. The Rig Aftermarket segment provides aftermarket products and services to support a large installed base of land and offshore rigs, and drilling rig components manufactured by the Company’s Rig Systems segment. The Wellbore Technologies segment designs, manufactures, rents and sells a range of equipment and technologies used to perform drilling operations. The Completion & Production Solutions segment integrates technologies for well completions and oil and gas production.
Receive News & Ratings for Matrix Service Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Matrix Service and related companies with MarketBeat.com's FREE daily email newsletter.