DMC Global (NASDAQ:BOOM – Get Free Report) and ProPetro (NYSE:PUMP – Get Free Report) are both small-cap energy companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, profitability, dividends, institutional ownership, valuation, analyst recommendations and earnings.
Profitability
This table compares DMC Global and ProPetro’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DMC Global | -3.37% | -6.84% | -2.57% |
| ProPetro | -1.15% | -1.49% | -0.89% |
Volatility & Risk
DMC Global has a beta of 1.8, indicating that its share price is 80% more volatile than the S&P 500. Comparatively, ProPetro has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500.
Valuation and Earnings
This table compares DMC Global and ProPetro”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DMC Global | $587.61 million | 0.27 | -$13.45 million | ($0.93) | -8.31 |
| ProPetro | $1.16 billion | 0.82 | $820,000.00 | ($0.11) | -70.42 |
ProPetro has higher revenue and earnings than DMC Global. ProPetro is trading at a lower price-to-earnings ratio than DMC Global, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
77.6% of DMC Global shares are owned by institutional investors. Comparatively, 84.7% of ProPetro shares are owned by institutional investors. 7.1% of DMC Global shares are owned by company insiders. Comparatively, 1.5% of ProPetro shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for DMC Global and ProPetro, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DMC Global | 1 | 2 | 1 | 0 | 2.00 |
| ProPetro | 1 | 3 | 8 | 0 | 2.58 |
DMC Global presently has a consensus target price of $9.00, suggesting a potential upside of 16.43%. ProPetro has a consensus target price of $15.05, suggesting a potential upside of 94.29%. Given ProPetro’s stronger consensus rating and higher probable upside, analysts clearly believe ProPetro is more favorable than DMC Global.
Summary
ProPetro beats DMC Global on 11 of the 14 factors compared between the two stocks.
About DMC Global
DMC Global Inc. provides a suite of engineered products and various solutions for the construction, energy, industrial processing, and transportation markets worldwide. The company operates through three segments: Arcadia, DynaEnergetics, and NobelClad. The Arcadia segment manufactures, assembles, and sells architectural building products, including exterior and interior framing systems, curtain walls, windows, doors, and interior partitions; architectural components, architectural framing systems, entrance systems, and sun control products; sliding and glazing systems; and thermally broken steel, aluminum windows and doors, and wood doors and windows. It sells its products through a national in-house sales force for buildings, such as office towers, airports, hotels, education and athletic facilities, health care locations, government buildings, retail centers, mixed use, and multi-family residential buildings. The DynaEnergetics segment designs, manufactures, markets, and sells perforating systems, including initiation systems, shaped charges, detonating cords, gun hardware, and control panels; and perforating systems and associated hardware for the oil and gas industry. It sells its products through direct selling, distributors, and independent sales representatives. The NobelClad segment produces and sells explosion-welded clad metal plates for use in the construction of heavy, corrosion resistant pressure vessels, and heat exchangers for oil and gas, chemical and petrochemical, alternative energy, hydrometallurgy, aluminum production, shipbuilding, rail car manufacturing, power generation, and industrial refrigeration industries. It sells its products through direct sales personnel, program managers, and independent sales representatives. The company was formerly known as Dynamic Materials Corporation and changed its name to DMC Global Inc. in November 2016. DMC Global Inc. was founded in 1965 and is headquartered in Broomfield, Colorado.
About ProPetro
ProPetro Holding Corp. operates as an integrated oilfield services company. The company provides hydraulic fracturing, wireline, cementing, and other complementary oilfield completion services to upstream oil and gas companies in the Permian Basin. ProPetro Holding Corp. was founded in 2007 and is headquartered in Midland, Texas.
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