Forum Energy Technologies (NYSE: FET) and DistributionNOW (NYSE:DNOW) are both small-cap oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, risk, earnings, profitability, analyst recommendations, dividends and valuation.
This table compares Forum Energy Technologies and DistributionNOW’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Forum Energy Technologies||-6.99%||-2.98%||-1.95%|
This is a summary of recent ratings for Forum Energy Technologies and DistributionNOW, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Forum Energy Technologies||0||12||3||0||2.20|
Forum Energy Technologies presently has a consensus target price of $15.77, suggesting a potential upside of 42.71%. DistributionNOW has a consensus target price of $12.50, suggesting a potential upside of 15.21%. Given Forum Energy Technologies’ higher probable upside, analysts plainly believe Forum Energy Technologies is more favorable than DistributionNOW.
Risk and Volatility
Forum Energy Technologies has a beta of 1.9, indicating that its share price is 90% more volatile than the S&P 500. Comparatively, DistributionNOW has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500.
Insider and Institutional Ownership
94.3% of Forum Energy Technologies shares are held by institutional investors. 32.8% of Forum Energy Technologies shares are held by company insiders. Comparatively, 3.5% of DistributionNOW shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Forum Energy Technologies and DistributionNOW’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Forum Energy Technologies||$818.60 million||1.47||-$59.40 million||($0.38)||-29.08|
|DistributionNOW||$2.65 billion||0.44||-$52.00 million||($0.27)||-40.19|
DistributionNOW has higher revenue and earnings than Forum Energy Technologies. DistributionNOW is trading at a lower price-to-earnings ratio than Forum Energy Technologies, indicating that it is currently the more affordable of the two stocks.
DistributionNOW beats Forum Energy Technologies on 8 of the 13 factors compared between the two stocks.
About Forum Energy Technologies
Forum Energy Technologies, Inc. designs, manufactures, and distributes products to the oil and natural gas industry in the United States and internationally. The company operates in three segments: Drilling & Subsea, Completions, and Production & Infrastructure. The Drilling & Subsea segment designs and manufactures products, and provides related services to the drilling, energy subsea construction and service markets, and other markets, such as alternative energy, defense, and communications. This segment offers drilling technologies consisting of capital equipment and a line of products consumed in the drilling; and subsea technologies, including robotic vehicles and other capital equipment, specialty components and tools, complementary subsea technical services and rental items, and products used in pipeline infrastructure. The Completions segment provides products and related services to the well construction, completion, stimulation, and intervention markets. This segment offers downhole technologies comprising cementing and casing tools, completion products, and a range of downhole cable protection solutions; and stimulation and intervention technologies, including pumps and well stimulation consumable products, and related recertification and refurbishment services. The Production & Infrastructure segment designs, manufactures, and supplies products, and provides related equipment and services to the production and infrastructure markets. This segment supplies production equipment, including well site production and process equipment; and a range of industrial and process valves. The company was formerly known as Forum Oilfield Technologies, Inc. and changed its name to Forum Energy Technologies, Inc. in August 2010. Forum Energy Technologies, Inc. was incorporated in 2005 and is headquartered in Houston, Texas.
NOW Inc. distributes energy and industrial products in the United States, Canada, and internationally. It offers consumable maintenance, repair, and operating supplies; and pipes, valves, fittings, flanges, gaskets, fasteners, electrical products, instrumentations, artificial lift, pumping solutions, valve actuation and modular process, measurement and control equipment, process equipment, pumps, OEM parts, coatings, mill supplies, and safety supplies, as well as provides application systems, work processes, parts integration, optimization solutions, and after-sales support services. The company also provides supply chain and materials management solutions that include procurement, inventory and warehouse management, logistics, point of issue technology, project management, business process, and performance metrics reporting. It offers its products under the DistributionNOW and Wilson Export brand names. The company serves customers in the upstream, midstream, and downstream sectors of the energy industry, including drilling contractors, well servicing companies, independent and national oil and gas companies, midstream operators, and refineries, as well as petrochemical, chemical, utilities, and other downstream energy processors; and industrial and manufacturing companies. NOW Inc. was incorporated in 2013 and is headquartered in Houston, Texas.
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