National Oilwell Varco (NYSE: NOV) and Forum Energy Technologies (NYSE:FET) are both oil related services and equipment – nec companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, institutional ownership, valuation, risk and dividends.
Insider and Institutional Ownership
90.2% of National Oilwell Varco shares are held by institutional investors. Comparatively, 98.6% of Forum Energy Technologies shares are held by institutional investors. 0.2% of National Oilwell Varco shares are held by company insiders. Comparatively, 32.8% of Forum Energy Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
National Oilwell Varco pays an annual dividend of $0.20 per share and has a dividend yield of 0.6%. Forum Energy Technologies does not pay a dividend. National Oilwell Varco pays out -8.1% of its earnings in the form of a dividend.
This is a breakdown of recent recommendations and price targets for National Oilwell Varco and Forum Energy Technologies, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|National Oilwell Varco||4||17||7||0||2.11|
|Forum Energy Technologies||0||12||3||0||2.20|
National Oilwell Varco currently has a consensus price target of $37.48, suggesting a potential upside of 17.04%. Forum Energy Technologies has a consensus price target of $18.36, suggesting a potential upside of 38.54%. Given Forum Energy Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe Forum Energy Technologies is more favorable than National Oilwell Varco.
Risk and Volatility
National Oilwell Varco has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, Forum Energy Technologies has a beta of 1.66, indicating that its share price is 66% more volatile than the S&P 500.
This table compares National Oilwell Varco and Forum Energy Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|National Oilwell Varco||-13.33%||-1.41%||-0.94%|
|Forum Energy Technologies||-16.85%||-3.97%||-2.63%|
Earnings and Valuation
This table compares National Oilwell Varco and Forum Energy Technologies’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|National Oilwell Varco||$7.25 billion||1.68||-$2.41 billion||($2.48)||-12.91|
|Forum Energy Technologies||$587.60 million||2.44||-$81.97 million||($1.26)||-10.52|
Forum Energy Technologies has higher revenue, but lower earnings than National Oilwell Varco. National Oilwell Varco 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.
Forum Energy Technologies beats National Oilwell Varco on 8 of the 15 factors compared between the two stocks.
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.
About Forum Energy Technologies
Forum Energy Technologies, Inc. is an oilfield products company. The Company designs, manufactures and distributes products, and engages in aftermarket services, parts supply and related services. The Company operates through three segments: Drilling & Subsea, Completions, and Production & Infrastructure. The Drilling & Subsea segment designs and manufactures products, and provides related services to the drilling and subsea construction markets. The Completions segment designs, manufactures and supplies products, and provide related services to the well construction, completion, stimulation and intervention markets. The Production & Infrastructure segment designs, manufactures and supplies products, and provides related equipment and services to production and infrastructure markets. Its product offering includes a mix of engineered capital products and replaced items that are used in the exploration, development, production and transportation of oil and natural gas.
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