Dril-Quip (NYSE: DRQ) and Dresser-Rand Group (NYSE:DRC) are both mid-cap oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, valuation, institutional ownership, analyst recommendations, earnings and risk.

Earnings and Valuation

This table compares Dril-Quip and Dresser-Rand Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dril-Quip $538.73 million 3.72 $93.22 million ($0.75) -70.60
Dresser-Rand Group N/A N/A N/A $1.07 79.61

Dril-Quip has higher revenue and earnings than Dresser-Rand Group. Dril-Quip is trading at a lower price-to-earnings ratio than Dresser-Rand Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings for Dril-Quip and Dresser-Rand Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dril-Quip 0 7 2 0 2.22
Dresser-Rand Group 0 0 0 0 N/A

Dril-Quip currently has a consensus price target of $48.83, indicating a potential downside of 7.77%. Given Dril-Quip’s higher possible upside, equities analysts clearly believe Dril-Quip is more favorable than Dresser-Rand Group.

Profitability

This table compares Dril-Quip and Dresser-Rand Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dril-Quip -6.14% 1.19% 1.12%
Dresser-Rand Group -4.64% -7.65% -2.86%

Summary

Dril-Quip beats Dresser-Rand Group on 5 of the 8 factors compared between the two stocks.

About Dril-Quip

Dril-Quip, Inc. (Dril-Quip) designs, manufactures, sells and services engineered drilling and production equipment. The Company’s operations are organized into three geographic segments: Western Hemisphere, including North and South America, headquartered in Houston, Texas; Eastern Hemisphere, including Europe and Africa, headquartered in Aberdeen, Scotland, and Asia-Pacific, including the Pacific Rim, Southeast Asia, Australia, India and the Middle East, headquartered in Singapore. Its equipment is suited for use in deepwater, harsh environments and service applications. Its principal products consist of subsea and surface wellheads, subsea and surface production trees, subsea control systems and manifolds, mudline hanger systems, specialty connectors and associated pipe, drilling and production riser systems, liner hangers, wellhead connectors and diverters. The Company has manufacturing facilities in approximately three of its headquarter locations, as well as in Macae, Brazil.

About Dresser-Rand Group

Dresser-Rand Group Inc. is a supplier of custom-engineered rotating equipment solutions for long-life, critical applications in the oil, gas, chemical, petrochemical, process, power generation, military and other industries around the world. The Company operates through two segments: New Units and Aftermarket Parts and Services. New Units segment offers standardized equipment, such as engines and single stage steam turbines. The Company’s Aftermarket Parts and Services segment offer a range of aftermarket parts and services, including replacement parts, field service turnaround, service and repair, operation and maintenance contracts, rotor/spare parts storage, condition monitoring, controls retrofit, site/reliability audits, remote area energy solutions, equipment repair and re-rates, equipment installation, applied technology, long-term service agreements, special coatings/welding, product training, turnkey installation/project management and energy asset management.

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