Keane Group (NYSE: FRAC) and Cypress Energy Partners, L.P. (NYSE:CELP) are both small-cap oil related services companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, valuation, earnings, profitability, analyst recommendations, dividends and institutional ownership.

Dividends

Cypress Energy Partners, L.P. pays an annual dividend of $0.84 per share and has a dividend yield of 12.2%. Keane Group does not pay a dividend. Cypress Energy Partners, L.P. pays out 420.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Keane Group and Cypress Energy Partners, L.P., as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Keane Group 0 9 10 0 2.53
Cypress Energy Partners, L.P. 0 3 0 0 2.00

Keane Group presently has a consensus target price of $20.78, indicating a potential upside of 42.41%. Cypress Energy Partners, L.P. has a consensus target price of $7.50, indicating a potential upside of 9.17%. Given Keane Group’s stronger consensus rating and higher possible upside, analysts clearly believe Keane Group is more favorable than Cypress Energy Partners, L.P..

Profitability

This table compares Keane Group and Cypress Energy Partners, L.P.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Keane Group -9.90% -19.19% -8.80%
Cypress Energy Partners, L.P. 0.15% 20.61% 1.69%

Valuation & Earnings

This table compares Keane Group and Cypress Energy Partners, L.P.’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Keane Group $420.57 million 3.88 -$187.08 million ($1.22) -11.96
Cypress Energy Partners, L.P. $298.00 million 0.27 -$4.66 million $0.20 34.35

Cypress Energy Partners, L.P. has higher revenue, but lower earnings than Keane Group. Keane Group is trading at a lower price-to-earnings ratio than Cypress Energy Partners, L.P., indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

38.3% of Keane Group shares are held by institutional investors. Comparatively, 0.6% of Cypress Energy Partners, L.P. shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Keane Group beats Cypress Energy Partners, L.P. on 7 of the 13 factors compared between the two stocks.

Keane Group Company Profile

Keane Group, Inc. is provider of integrated well completion services in the United States, with a focus on demanding completion solutions. The Company’s segments include Completion Services, which comprises hydraulic fracturing and wireline divisions, and Other Services, which consists of coiled tubing, cementing and drilling divisions. It provides hydraulic fracturing and wireline services pursuant to contractual arrangements, such as term contracts and pricing agreements, or on a spot market basis. It provides certain complementary services such as coiled tubing, cementing and drilling pursuant to contractual arrangements, such as term contracts on a spot basis. Its primary services include horizontal and vertical fracturing, wireline perforation and logging and engineered solutions, as well as other value-added service offerings. As of July 3, 2017, the Company had approximately 1.2 million hydraulic horsepower spread across 23 hydraulic fracturing fleets and 31 wireline trucks.

Cypress Energy Partners, L.P. Company Profile

Cypress Energy Partners, L.P. is a limited partnership company, which serves energy companies throughout North America. The Company provides independent pipeline inspection and integrity services to producers and pipeline companies and water and environmental services with salt water disposal (SWD) facilities to the United States onshore oil and natural gas producers and trucking companies. It operates through three segments: Pipeline Inspection Services (PIS), which provides independent inspection services to various energy, public utility and pipeline companies in both the United States and Canada; Integrity Services (IS), which provides hydrostatic testing services to natural gas and petroleum companies and pipeline construction companies of newly constructed and existing natural gas and petroleum pipelines, and Water and Environmental Services (W&ES), which provides SWD services to oil and natural gas producers and trucking companies.

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