Newpark Resources (NYSE: NR) and Forum Energy Technologies (NYSE:FET) are both small-cap oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, institutional ownership, earnings, valuation and profitability.
Volatility and Risk
Newpark Resources has a beta of 1.53, meaning that its stock price is 53% more volatile than the S&P 500. Comparatively, Forum Energy Technologies has a beta of 1.9, meaning that its stock price is 90% more volatile than the S&P 500.
This table compares Newpark Resources and Forum Energy Technologies’ 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%|
Earnings and Valuation
This table compares Newpark Resources and Forum Energy Technologies’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Newpark Resources||$747.76 million||1.16||-$6.14 million||$0.10||97.50|
|Forum Energy Technologies||$818.60 million||1.60||-$59.40 million||($0.38)||-31.71|
Newpark Resources has higher earnings, but lower revenue than Forum Energy Technologies. Forum Energy Technologies is trading at a lower price-to-earnings ratio than Newpark Resources, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
94.3% of Forum Energy Technologies shares are held by institutional investors. 4.8% of Newpark Resources shares are held by insiders. Comparatively, 30.0% of Forum Energy Technologies shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This is a summary of recent recommendations for Newpark Resources and Forum Energy Technologies, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Forum Energy Technologies||0||11||3||0||2.21|
Newpark Resources currently has a consensus target price of $10.00, suggesting a potential upside of 2.56%. Forum Energy Technologies has a consensus target price of $15.33, suggesting a potential upside of 27.25%. Given Forum Energy Technologies’ higher probable upside, analysts plainly believe Forum Energy Technologies is more favorable than Newpark Resources.
About Newpark Resources
Newpark Resources, Inc. provides products, rentals, and services primarily to the oil and gas exploration and production industry. It operates through two segments, Fluids Systems, and Mats and Integrated Services. The Fluids Systems segment provides drilling fluids products and technical services to customers in the North America, Europe, the Middle East and Africa, Latin America, and the Asia Pacific regions. The Mats and Integrated Services segment offers composite mat rentals, site construction, and related site services to customers in various markets, including oil and gas exploration and production, electrical transmission and distribution, pipeline, solar, petrochemical, and construction across the United States, Canada, Europe, and internationally. The company was founded in 1932 and is based in The Woodlands, Texas.
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.
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