National-Oilwell Varco (NYSE: NOV) and Forum Energy Technologies (NYSE:FET) are both oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.
This is a breakdown of recent ratings for National-Oilwell Varco and Forum Energy Technologies, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Forum Energy Technologies||0||12||2||0||2.14|
National-Oilwell Varco currently has a consensus target price of $37.65, indicating a potential upside of 13.61%. Forum Energy Technologies has a consensus target price of $17.92, indicating a potential upside of 24.47%. Given Forum Energy Technologies’ higher probable upside, analysts plainly believe Forum Energy Technologies is more favorable than National-Oilwell Varco.
Insider and Institutional Ownership
92.6% of National-Oilwell Varco shares are held by institutional investors. Comparatively, 98.7% of Forum Energy Technologies shares are held by institutional investors. 0.6% of National-Oilwell Varco shares are held by insiders. Comparatively, 32.8% of Forum Energy Technologies shares are held 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
National-Oilwell Varco has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500. Comparatively, Forum Energy Technologies has a beta of 1.66, indicating that its stock 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|
|Forum Energy Technologies||-16.85%||-3.97%||-2.63%|
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 -8.0% of its earnings in the form of a dividend.
Valuation & Earnings
This table compares National-Oilwell Varco and Forum Energy Technologies’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|National-Oilwell Varco||$7.25 billion||1.74||-$2.41 billion||($2.49)||-13.31|
|Forum Energy Technologies||$587.60 million||2.65||-$81.97 million||($1.26)||-11.43|
Forum Energy Technologies has lower revenue, but higher 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.
National-Oilwell Varco beats Forum Energy Technologies on 8 of the 15 factors compared between the two stocks.
National-Oilwell Varco Company Profile
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.
Forum Energy Technologies Company Profile
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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