Dawson Geophysical (NASDAQ:DWSN) and CGG (OTCMKTS:CGGYY) are both small-cap oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, dividends, risk, institutional ownership, analyst recommendations, earnings and profitability.

Insider and Institutional Ownership

68.7% of Dawson Geophysical shares are owned by institutional investors. 7.2% of Dawson Geophysical shares are owned 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.

Profitability

This table compares Dawson Geophysical and CGG’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dawson Geophysical -14.69% -18.36% -14.53%
CGG N/A N/A N/A

Volatility & Risk

Dawson Geophysical has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, CGG has a beta of 2.46, indicating that its share price is 146% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Dawson Geophysical and CGG, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dawson Geophysical 0 0 1 0 3.00
CGG 0 0 0 0 N/A

Dawson Geophysical presently has a consensus price target of $4.00, indicating a potential upside of 70.94%. Given Dawson Geophysical’s higher probable upside, equities research analysts clearly believe Dawson Geophysical is more favorable than CGG.

Valuation and Earnings

This table compares Dawson Geophysical and CGG’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dawson Geophysical $154.16 million 0.35 -$24.41 million ($1.07) -2.19
CGG $1.19 billion 0.95 -$95.80 million N/A N/A

Dawson Geophysical has higher earnings, but lower revenue than CGG.

Summary

CGG beats Dawson Geophysical on 6 of the 11 factors compared between the two stocks.

Dawson Geophysical Company Profile

Dawson Geophysical Company provides onshore seismic data acquisition services in the United States and Canada. The company acquires and processes 2-D, 3-D, and multi-component seismic data for its clients, including oil and gas companies, and independent oil and gas operators, as well as providers of multi-client data libraries. Its seismic crews supply seismic data primarily to companies engaged in the exploration and development of oil and natural gas on land and in land-to-water transition areas. The company also serves the potash mining industry. Dawson Geophysical Company was founded in 1952 and is headquartered in Midland, Texas with three additional offices in Denison, Houston, and Plano, Texas, as well as in Oklahoma City, Oklahoma and Denver, Colorado.

CGG Company Profile

CGG operates as a geoscience company in North America, the Central and South Americas, Europe, Africa, the Middle East, and the Asia Pacific. It operates through Geology, Geophysics & Reservoir; and Equipment segments. The Geology, Geophysics & Reservoir segment develops and licenses multi-client seismic surveys; processes seismic data; and sells seismic data processing and reservoir characterization software primarily under the geovation, Hampson-Russell, and Jason brands. It also provides geoscience and petroleum engineering consulting services; and data management services and software to its clients, as well as collects, develops, and licenses geological data under the Robertson brand. The Equipment segment manufactures and sells seismic equipment used for land and marine seismic data acquisition, including seismic recording equipment, software, and seismic sources for land vibrators or marine air guns. It also provides integrated solutions; and customer support services, such as training. The company was formerly known as Compagnie Générale de Géophysique — Veritas SA and changed its name to CGG in 2013. CGG was founded in 1931 and is headquartered in Paris, France.

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