Natural Gas Services Group (NYSE:NGS) and National Energy Services Reunited (NASDAQ:NESR) are both small-cap oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, earnings, analyst recommendations, risk, profitability, valuation and institutional ownership.
Institutional & Insider Ownership
89.8% of Natural Gas Services Group shares are owned by institutional investors. Comparatively, 16.7% of National Energy Services Reunited shares are owned by institutional investors. 6.2% of Natural Gas Services Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Natural Gas Services Group and National Energy Services Reunited’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Natural Gas Services Group||$65.48 million||3.14||$430,000.00||$0.08||194.38|
|National Energy Services Reunited||$485.62 million||1.52||$42.76 million||N/A||N/A|
National Energy Services Reunited has higher revenue and earnings than Natural Gas Services Group.
This is a summary of recent recommendations and price targets for Natural Gas Services Group and National Energy Services Reunited, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Natural Gas Services Group||0||0||2||0||3.00|
|National Energy Services Reunited||0||0||5||0||3.00|
Natural Gas Services Group presently has a consensus target price of $23.50, suggesting a potential upside of 51.13%. National Energy Services Reunited has a consensus target price of $15.75, suggesting a potential upside of 84.86%. Given National Energy Services Reunited’s higher possible upside, analysts clearly believe National Energy Services Reunited is more favorable than Natural Gas Services Group.
Risk and Volatility
Natural Gas Services Group has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500. Comparatively, National Energy Services Reunited has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500.
This table compares Natural Gas Services Group and National Energy Services Reunited’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Natural Gas Services Group||0.81%||0.46%||0.40%|
|National Energy Services Reunited||9.65%||10.65%||6.36%|
National Energy Services Reunited beats Natural Gas Services Group on 7 of the 11 factors compared between the two stocks.
About Natural Gas Services Group
Natural Gas Services Group, Inc. provides small to medium horsepower compression equipment to the natural gas industry in the United States. The company engages in the rental of small to medium horsepower compression equipment to non-conventional natural gas and oil production businesses. As of December 31, 2018, it had 2,572 natural gas compressors in its rental fleet totaling 398,765 horsepower. The company also assembles compressor components into compressor units for rent or sale; engineers and fabricates natural gas compressors; and designs and manufactures a line of reciprocating compressor frames, cylinders, and parts. In addition, it is involved in the design, fabrication, sale, installation, and service of flare stacks and related ignition and control devices for the onshore and offshore incineration of gas compounds, such as hydrogen sulfide, carbon dioxide, natural gas, and liquefied petroleum gases. Further, the company offers customer support services for its compressor and flare sales business; exchanges and rebuilds program for screw compressors; and maintains an inventory of new and used compressors. Natural Gas Services Group, Inc. was founded in 1998 and is headquartered in Midland, Texas.
About National Energy Services Reunited
National Energy Services Reunited Corp., through its subsidiaries, provides oilfield services to oil and gas companies in the Middle East, North Africa, and the Asia Pacific regions. It operates through Production Services, and Drilling and Evaluation Services segments. The Production Services segment offers coiled tubing services, such as nitrogen lifting, fishing, milling, clean-out, scale removal, and other well applications; primary and remedial cementing services; stimulation and pumping services; nitrogen services; and filtration services, as well as frac tanks and pumping units. This segment also provides artificial lift services; laboratory services; and surface and subsurface safety systems, high-pressure packer systems, flow controls, service tools, expandable liner technology, vacuum insulated tubing technology, and engineering capabilities with manufacturing capacity and testing facilities. In addition, the Production Services segment offers pipeline services, such as water filling and hydro testing, nitrogen purging, and de-gassing and pressure testing, as well as cutting/welding and cooling down piping/vessels systems; and production assurance chemicals. Its Drilling and Evaluation Services segment provides fishing and remedial solutions, rig services, and well testing services to measure solids, gas, and oil and water produced from a well; wireline logging services; drilling and workover rigs; turbines and directional drilling; drilling fluid systems and related technologies; slickline services for removal of scale, wax and sand build-up, setting plugs, changing out gas lift valves, and fishing and other well applications; and rents drilling tools, as well as sources, treats, and disposes water for oil and gas, municipal, and industrial use. National Energy Services Reunited Corp. was founded in 2017 and is headquartered in Houston, Texas.
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