Newpark Resources (NYSE: NR) is one of 56 public companies in the “Oil Related Services and Equipment” industry, but how does it compare to its competitors? We will compare Newpark Resources to similar businesses based on the strength of its institutional ownership, risk, profitability, dividends, analyst recommendations, valuation and earnings.

Volatility and Risk

Newpark Resources has a beta of 1.61, indicating that its share price is 61% more volatile than the S&P 500. Comparatively, Newpark Resources’ competitors have a beta of 1.57, indicating that their average share price is 57% more volatile than the S&P 500.

Valuation & Earnings

This table compares Newpark Resources and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Newpark Resources $583.35 million $24.26 million -64.00
Newpark Resources Competitors $2.04 billion $274.32 million -40.56

Newpark Resources’ competitors have higher revenue and earnings than Newpark Resources. Newpark Resources is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Newpark Resources and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Newpark Resources -2.20% -2.92% -1.82%
Newpark Resources Competitors -19.40% -18.10% -6.51%

Analyst Recommendations

This is a summary of current recommendations and price targets for Newpark Resources and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Newpark Resources 0 1 3 0 2.75
Newpark Resources Competitors 500 2214 2930 125 2.46

Newpark Resources currently has a consensus target price of $9.25, indicating a potential downside of 3.65%. As a group, “Oil Related Services and Equipment” companies have a potential upside of 25.07%. Given Newpark Resources’ competitors higher probable upside, analysts clearly believe Newpark Resources has less favorable growth aspects than its competitors.

Institutional and Insider Ownership

65.8% of shares of all “Oil Related Services and Equipment” companies are owned by institutional investors. 4.9% of Newpark Resources shares are owned by insiders. Comparatively, 11.9% of shares of all “Oil Related Services and Equipment” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

About Newpark Resources

Newpark Resources, Inc. is a supplier providing products and services primarily to the oil and gas exploration and production (E&P) industry. The Company’s segments include 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 Asia Pacific regions. The Mats and Integrated Services segment provides composite mat rentals, as well as location construction and related site services, to customers at well, production, transportation and refinery locations in the United States. It manufactures and sells composite mats to customers outside of the United States, and to domestic customers outside of the oil and gas exploration market. The Fluids Systems segment offers customized solutions for technical drilling projects involving subsurface conditions, such as horizontal, directional, geologically deep or deep water drilling.

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