Oil States International (NYSE: OIS) and Newpark Resources (NYSE:NR) are both small-cap oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, earnings, risk, dividends and valuation.

Volatility and Risk

Oil States International has a beta of 1.65, suggesting that its share price is 65% more volatile than the S&P 500. Comparatively, Newpark Resources has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Oil States International and Newpark Resources, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oil States International 1 10 3 0 2.14
Newpark Resources 0 1 3 0 2.75

Oil States International currently has a consensus target price of $30.27, indicating a potential downside of 7.76%. Newpark Resources has a consensus target price of $10.00, indicating a potential downside of 2.91%. Given Newpark Resources’ stronger consensus rating and higher probable upside, analysts clearly believe Newpark Resources is more favorable than Oil States International.

Institutional and Insider Ownership

99.4% of Newpark Resources shares are held by institutional investors. 1.9% of Oil States International shares are held by company insiders. Comparatively, 4.8% of Newpark Resources shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Oil States International and Newpark Resources’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Oil States International $670.63 million 2.93 -$84.85 million ($1.06) -30.96
Newpark Resources $747.76 million 1.23 -$6.14 million $0.10 103.00

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

Profitability

This table compares Oil States International and Newpark Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Oil States International -9.14% -3.01% -2.46%
Newpark Resources 0.25% 3.10% 1.84%

Summary

Newpark Resources beats Oil States International on 11 of the 13 factors compared between the two stocks.

Oil States International Company Profile

Oil States International, Inc., through its subsidiaries, provides specialty products and services to oil and gas companies worldwide. It operates through two segments, Well Site Services 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. Its services for the onshore and offshore oil and gas industry, including wellhead isolation services; wireline and coiled tubing support services; frac valve and flowback services; well testing, including separators and line heaters; ball launching services; downhole extended-reach technology; pipe recovery systems; thru-tubing milling and fishing services; hydraulic chokes and manifolds; blow out preventers; and gravel pack and sand control operations on well bores. The Offshore/Manufactured Products segment engages in the design, manufacture, fabrication, inspection, assembly, repair, testing, and marketing of OEM equipment for mooring, pipeline, production and drilling risers, and subsea applications along with equipment for offshore vessel and rig construction. Its products and services comprise flexible bearings and connection systems; casing and conductor connections and joints; subsea pipeline products; compact ball valves, manifold system components, and diverter valves; marine winches, mooring systems, cranes, and other heavy-lift rig equipment; production, workover, completion, and drilling riser systems and their related repair services; blowout preventer stack assembly, integration, testing, and repair services; consumable downhole products; and welding, cladding, and other metallurgical technologies. Oil States International, Inc. was founded in 1995 and is headquartered in Houston, Texas.

Newpark Resources Company Profile

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.

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