Financial Review: National-Oilwell Varco (NOV) versus Eco-Stim Energy Solutions (ESES)
National-Oilwell Varco (NYSE: NOV) and Eco-Stim Energy Solutions (NASDAQ:ESES) are both energy companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, analyst recommendations, valuation, profitability and risk.
Insider & Institutional Ownership
92.4% of National-Oilwell Varco shares are owned by institutional investors. Comparatively, 84.1% of Eco-Stim Energy Solutions shares are owned by institutional investors. 0.6% of National-Oilwell Varco shares are owned by company insiders. Comparatively, 11.1% of Eco-Stim Energy Solutions shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Volatility & Risk
National-Oilwell Varco has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500. Comparatively, Eco-Stim Energy Solutions has a beta of 2.95, meaning that its stock price is 195% more volatile than the S&P 500.
National-Oilwell Varco pays an annual dividend of $0.20 per share and has a dividend yield of 0.5%. Eco-Stim Energy Solutions does not pay a dividend. National-Oilwell Varco pays out -8.1% of its earnings in the form of a dividend.
This is a summary of recent ratings and target prices for National-Oilwell Varco and Eco-Stim Energy Solutions, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Eco-Stim Energy Solutions||0||0||5||0||3.00|
National-Oilwell Varco currently has a consensus price target of $37.71, indicating a potential downside of 1.96%. Eco-Stim Energy Solutions has a consensus price target of $2.36, indicating a potential upside of 69.78%. Given Eco-Stim Energy Solutions’ stronger consensus rating and higher possible upside, analysts clearly believe Eco-Stim Energy Solutions is more favorable than National-Oilwell Varco.
Earnings & Valuation
This table compares National-Oilwell Varco and Eco-Stim Energy Solutions’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|National-Oilwell Varco||$7.25 billion||2.02||-$2.41 billion||($2.48)||-15.51|
|Eco-Stim Energy Solutions||$8.35 million||12.41||-$17.92 million||($1.08)||-1.29|
Eco-Stim Energy Solutions has lower revenue, but higher earnings than National-Oilwell Varco. National-Oilwell Varco is trading at a lower price-to-earnings ratio than Eco-Stim Energy Solutions, indicating that it is currently the more affordable of the two stocks.
This table compares National-Oilwell Varco and Eco-Stim Energy Solutions’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Eco-Stim Energy Solutions||-85.29%||-43.11%||-23.60%|
About National-Oilwell Varco
National Oilwell Varco, Inc. is an oilfield equipment manufacturer and technology provider. The Company operates through four segments: Rig Systems, Rig Aftermarket, Wellbore Technologies and Completion & Production Solutions. The Rig Systems segment makes and supports the capital equipment and integrated systems needed to drill oil and gas wells on land and offshore. The Rig Systems segment designs, manufactures and sells land rigs, offshore drilling equipment packages, and drilling rig components. The Rig Aftermarket segment provides aftermarket products and services to support a large installed base of land and offshore rigs, and drilling rig components manufactured by the Company’s Rig Systems segment. The Wellbore Technologies segment designs, manufactures, rents and sells a range of equipment and technologies used to perform drilling operations. The Completion & Production Solutions segment integrates technologies for well completions and oil and gas production.
About Eco-Stim Energy Solutions
Eco-Stim Energy Solutions, Inc. is an oilfield services company. The Company provides well stimulation, coiled tubing and field management services to the upstream oil and gas industry. The Company focuses on the active shale and unconventional oil and natural gas basins outside the United States and it has commenced operations in Argentina. The Company operates well stimulation fleets, coiled tubing units and other downhole completion equipment, as well as provides sweet spot analysis in shale resource basins using geophysical predictive modeling combined with real-time feedback from down-hole diagnostic tools. The Company offers a pumping fleet, including well-stimulation pumps, nitrogen pumping units and cranes, in both trailer-mounted and skid-mounted configurations. It provides a range of pressure-pumping services, including work-over pumping, well injection and wireline pump downs.
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