Deep Down (OTCMKTS: DPDW) and Oil States International (NYSE:OIS) are both small-cap oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.
This table compares Deep Down and Oil States International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Oil States International||-12.65%||-4.57%||-4.00%|
This is a breakdown of current recommendations for Deep Down and Oil States International, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Oil States International||0||8||6||0||2.43|
Oil States International has a consensus target price of $28.50, indicating a potential upside of 3.64%. Given Oil States International’s higher probable upside, analysts clearly believe Oil States International is more favorable than Deep Down.
Insider and Institutional Ownership
8.7% of Deep Down shares are owned by institutional investors. Comparatively, 97.4% of Oil States International shares are owned by institutional investors. 2.0% of Oil States International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Risk and Volatility
Deep Down has a beta of -0.5, indicating that its share price is 150% less volatile than the S&P 500. Comparatively, Oil States International has a beta of 1.75, indicating that its share price is 75% more volatile than the S&P 500.
Valuation & Earnings
This table compares Deep Down and Oil States International’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Deep Down||$19.48 million||0.60||-$100,000.00||N/A||N/A|
|Oil States International||$670.63 million||2.46||-$84.85 million||($1.06)||-25.94|
Deep Down has higher earnings, but lower revenue than Oil States International.
Oil States International beats Deep Down on 7 of the 11 factors compared between the two stocks.
Deep Down Company Profile
Deep Down, Inc. is engaged in the oilfield services industry. The Company operates through Deep Down Delaware segment. The Company is a provider of specialized services to the offshore energy industry to support deep water and ultra-deep water exploration, development and production of oil and gas, and other maritime operations. It also produces custom engineered products that assist it in fulfilling service objectives for specific projects on a contractual basis. The Company designs and manufactures deep water and ultra-deep water, surface and offshore equipment solutions, which are used by independent and foreign national oil and gas companies in offshore areas across the world. The Company provides engineering and management services, including the design, installation and retrieval of subsea equipment and systems, connection and termination operations, well-commissioning services, as well as construction support and remotely operated vehicle (ROV) operations support.
Oil States International Company Profile
Oil States International, Inc., through its subsidiaries, provides specialty products and services to oil and gas companies worldwide. It operates through two segments, Well Site Services and Offshore/Manufactured Products. The Well Site Services segment offers a range of equipment and services that are used to drill for, establish, and maintain the flow of oil and natural gas from a well throughout its lifecycle. Its services for the onshore and offshore oil and gas industry, including wellhead isolation services; wireline and coiled tubing support services; frac valve and flowback services; well testing, including separators and line heaters; ball launching services; downhole extended-reach technology; pipe recovery systems; thru-tubing milling and fishing services; hydraulic chokes and manifolds; blow out preventers; and gravel pack and sand control operations on well bores. The Offshore/Manufactured Products segment engages in the design, manufacture, fabrication, inspection, assembly, repair, testing, and marketing of OEM equipment for mooring, pipeline, production and drilling risers, and subsea applications along with equipment for offshore vessel and rig construction. Its products and services comprise flexible bearings and connection systems; casing and conductor connections and joints; subsea pipeline products; compact ball valves, manifold system components, and diverter valves; marine winches, mooring systems, cranes, and other heavy-lift rig equipment; production, workover, completion, and drilling riser systems and their related repair services; blowout preventer stack assembly, integration, testing, and repair services; consumable downhole products; and welding, cladding, and other metallurgical technologies. Oil States International, Inc. was founded in 1995 and is headquartered in Houston, Texas.
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