Comparing Oil States International (NYSE:OIS) & USA Compression Partners (NYSE:USAC)

Oil States International (NYSE:OIS) and USA Compression Partners (NYSE:USAC) are both energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Earnings & Valuation

This table compares Oil States International and USA Compression Partners”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oil States International	$664.29 million	0.56	-$11.26 million	$0.37	16.66
USA Compression Partners	$981.22 million	2.76	$99.57 million	$0.67	32.89

USA Compression Partners has higher revenue and earnings than Oil States International. Oil States International is trading at a lower price-to-earnings ratio than USA Compression Partners, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Oil States International and USA Compression Partners, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oil States International	0	2	0	0	2.00
USA Compression Partners	1	3	0	0	1.75

Oil States International currently has a consensus target price of $6.50, suggesting a potential upside of 5.43%. USA Compression Partners has a consensus target price of $25.50, suggesting a potential upside of 15.72%. Given USA Compression Partners’ higher possible upside, analysts clearly believe USA Compression Partners is more favorable than Oil States International.

Volatility & Risk

Oil States International has a beta of 1.82, suggesting that its stock price is 82% more volatile than the S&P 500. Comparatively, USA Compression Partners has a beta of 0.35, suggesting that its stock price is 65% less volatile than the S&P 500.

Profitability

This table compares Oil States International and USA Compression Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oil States International	1.02%	2.56%	1.76%
USA Compression Partners	9.56%	-71.82%	3.62%

Institutional & Insider Ownership

97.4% of Oil States International shares are held by institutional investors. Comparatively, 47.8% of USA Compression Partners shares are held by institutional investors. 5.4% of Oil States International shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

USA Compression Partners beats Oil States International on 7 of the 13 factors compared between the two stocks.

About Oil States International

Oil States International, Inc., through its subsidiaries, provides engineered capital equipment and products for the energy, industrial, and military sectors worldwide. The company operates through three segments: Well Site Services, Downhole Technologies, and Offshore/Manufactured Products. The Well Site Services segment offers a range of equipment and services that are used to drill for, establish, and maintain the flow of oil and natural gas from a well throughout its lifecycle. It also provides wireline support, frac stacks, isolation tools, downhole and extended reach activity, well testing and flowback operations, sand control, and land drilling services. The Downhole Technologies segment provides oil and gas perforation systems, and downhole tools in support of completion, intervention, wireline, and well abandonment operations. This segment also designs, manufactures, and markets its consumable engineered products to oilfield service, and exploration and production companies. The Offshore/Manufactured Products segment designs, manufactures, and markets capital equipment utilized on floating production systems, subsea pipeline infrastructure, and offshore drilling rigs and vessels. Its products include flexible bearings, advanced connector systems, high-pressure riser systems, managed pressure drilling systems, deepwater mooring systems, cranes, subsea pipeline products, and blow-out preventer stack integration products. This segment also provides short-cycle products, such as valves, elastomers, and other specialty products that are used in the land-based drilling and completion markets; and other products for use in industrial, military, alternative energy, and other applications. In addition, it offers specialty welding, fabrication, cladding and machining, offshore installation, and inspection and repair services. The company was incorporated in 1995 and is headquartered in Houston, Texas.

About USA Compression Partners

USA Compression Partners, LP provides compression services under term contracts with customers in the natural gas and crude oil industries in the United States. The company engineers, designs, operates, services, and repairs its compression units; and maintains related support inventory and equipment. It also provides compression services in various shale plays, including the Utica, Marcellus, Permian Basin, Delaware Basin, Eagle Ford, Mississippi Lime, Granite Wash, Woodford, Barnett, Haynesville, Niobrara, and Fayetteville shales. As of December 31, 2017, the company had approximately 1,799,781 horsepower in its fleet. It serves oil companies; and independent producers, processors, gatherers, and transporters of natural gas and crude oil. USA Compression GP, LLC operates as the general partner of USA Compression Partners, LP. The company was formerly known as Compression Holdings, LP, and changed its name to USA Compression Partners, LP in June 2011. USA Compression Partners, LP was founded in 1998 and is headquartered in Austin, Texas.