RigNet (NASDAQ: RNET) and Willbros Group (NYSE:WG) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their profitabiliy, earnings, risk, institutional ownership, valuation, analyst recommendations and dividends.

Institutional and Insider Ownership

99.5% of RigNet shares are held by institutional investors. Comparatively, 57.2% of Willbros Group shares are held by institutional investors. 1.2% of RigNet shares are held by insiders. Comparatively, 2.1% of Willbros Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for RigNet and Willbros Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RigNet 0 2 1 0 2.33
Willbros Group 0 0 0 0 N/A

RigNet presently has a consensus target price of $20.50, suggesting a potential upside of 23.12%. Given RigNet’s higher probable upside, research analysts plainly believe RigNet is more favorable than Willbros Group.

Valuation & Earnings

This table compares RigNet and Willbros Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
RigNet $206.35 million 1.45 $25.82 million ($0.65) -25.62
Willbros Group $730.56 million 0.19 -$9.80 million ($0.73) -3.01

RigNet has higher revenue, but lower earnings than Willbros Group. RigNet is trading at a lower price-to-earnings ratio than Willbros Group, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

RigNet has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, Willbros Group has a beta of 3.22, meaning that its share price is 222% more volatile than the S&P 500.

Profitability

This table compares RigNet and Willbros Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RigNet -5.69% -9.98% -4.94%
Willbros Group -6.17% -31.89% -11.13%

Summary

RigNet beats Willbros Group on 9 of the 12 factors compared between the two stocks.

RigNet Company Profile

RigNet, Inc. (RigNet) provides customized systems and solutions serving customers with data networking and operational requirements. The Company provides voice and data network, video conferencing and monitoring, crew welfare, asset and weather monitoring, and real-time data services. It operates through two segments: Managed Services, and Systems Integration and Automation (SI&A). The Managed Services segment provides remote communications services for offshore and onshore drilling rigs and production facilities, as well as, support vessels and other remote sites. The SI&A segment provides customized solutions for customer telecommunications systems. As of December 31, 2016, the Company provided remote communications and collaborative services to approximately 500 customers reaching approximately 900 remote sites located in approximately 50 countries on six continents. It provides managed remote communications, engineered telecommunications solutions and applications.

Willbros Group Company Profile

Willbros Group, Inc. is a specialty energy infrastructure contractor serving the oil and gas and power industries with offerings that primarily include construction, maintenance and facilities development services. The Company operates through three segments: Oil & Gas, Utility T&D and Canada. The Company provides services through operating subsidiaries. The Company’s segments operated primarily in the United States and Canada. The Company provides construction, maintenance and lifecycle extension services to the midstream markets. The Company provides a range of services in electric and natural gas transmission and distribution, including engineering, procurement, maintenance and construction, repair and restoration of utility infrastructure. It is engaged in construction, maintenance and fabrication, including integrity and supporting civil work, general mechanical and facility construction, application program interface (API) storage tanks, general and modular fabrication.

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