Fairmount Santrol Holdings (NYSE: FMSA) and Schlumberger N.V. (NYSE:SLB) are both industrial products companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, profitability, risk, earnings, institutional ownership, analyst recommendations and dividends.
Valuation & Earnings
This table compares Fairmount Santrol Holdings and Schlumberger N.V.’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Fairmount Santrol Holdings||$681.12 million||1.14||$84.28 million||($0.20)||-17.25|
|Schlumberger N.V.||$28.48 billion||3.27||$6.27 billion||$0.13||517.27|
Schlumberger N.V. has higher revenue and earnings than Fairmount Santrol Holdings. Fairmount Santrol Holdings is trading at a lower price-to-earnings ratio than Schlumberger N.V., indicating that it is currently the more affordable of the two stocks.
Schlumberger N.V. pays an annual dividend of $2.00 per share and has a dividend yield of 3.0%. Fairmount Santrol Holdings does not pay a dividend. Schlumberger N.V. pays out 1,538.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Fairmount Santrol Holdings has raised its dividend for 6 consecutive years.
This is a summary of recent ratings and target prices for Fairmount Santrol Holdings and Schlumberger N.V., as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Fairmount Santrol Holdings||2||7||8||0||2.35|
Fairmount Santrol Holdings presently has a consensus price target of $6.94, indicating a potential upside of 101.16%. Schlumberger N.V. has a consensus price target of $85.39, indicating a potential upside of 26.99%. Given Fairmount Santrol Holdings’ higher possible upside, analysts clearly believe Fairmount Santrol Holdings is more favorable than Schlumberger N.V..
Insider and Institutional Ownership
84.2% of Fairmount Santrol Holdings shares are owned by institutional investors. Comparatively, 79.0% of Schlumberger N.V. shares are owned by institutional investors. 9.8% of Fairmount Santrol Holdings shares are owned by company insiders. Comparatively, 0.4% of Schlumberger N.V. shares are owned 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.
This table compares Fairmount Santrol Holdings and Schlumberger N.V.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Fairmount Santrol Holdings||-6.11%||-24.37%||-3.68%|
Volatility and Risk
Fairmount Santrol Holdings has a beta of 1.9, meaning that its stock price is 90% more volatile than the S&P 500. Comparatively, Schlumberger N.V. has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500.
Schlumberger N.V. beats Fairmount Santrol Holdings on 11 of the 17 factors compared between the two stocks.
Fairmount Santrol Holdings Company Profile
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.
Schlumberger N.V. Company Profile
Schlumberger N.V. provides technology for reservoir characterization, drilling, production and processing to the oil and gas industry. The Company’s segments include Reservoir Characterization Group, Drilling Group, Production Group and Cameron Group. The Reservoir Characterization Group consists of the principal technologies involved in finding and defining hydrocarbon resources. The Drilling Group consists of the principal technologies involved in the drilling and positioning of oil and gas wells. The Production Group consists of the principal technologies involved in the lifetime production of oil and gas reservoirs and includes Well Services, Completions, Artificial Lift, Integrated Production Services (IPS) and Schlumberger Production Management (SPM). The Cameron Group consists of the principal technologies involved in pressure and flow control for drilling and intervention rigs, oil and gas wells and production facilities.
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