Forum Energy Technologies (NYSE: FET) and Eco-Stim Energy Solutions (NASDAQ:ESES) are both small-cap oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, analyst recommendations, institutional ownership and risk.

Analyst Recommendations

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This is a breakdown of current recommendations for Forum Energy Technologies and Eco-Stim Energy Solutions, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Forum Energy Technologies 0 12 3 0 2.20
Eco-Stim Energy Solutions 0 0 5 0 3.00

Forum Energy Technologies currently has a consensus price target of $15.77, suggesting a potential upside of 38.33%. Eco-Stim Energy Solutions has a consensus price target of $2.36, suggesting a potential upside of 98.32%. Given Eco-Stim Energy Solutions’ stronger consensus rating and higher probable upside, analysts clearly believe Eco-Stim Energy Solutions is more favorable than Forum Energy Technologies.

Valuation & Earnings

This table compares Forum Energy Technologies and Eco-Stim Energy Solutions’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Forum Energy Technologies $818.60 million 1.51 -$59.40 million ($0.65) -17.54
Eco-Stim Energy Solutions $44.02 million 2.02 -$26.95 million ($0.87) -1.37

Eco-Stim Energy Solutions has lower revenue, but higher earnings than Forum Energy Technologies. Forum Energy Technologies 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.

Institutional & Insider Ownership

94.3% of Forum Energy Technologies shares are held by institutional investors. Comparatively, 84.4% of Eco-Stim Energy Solutions shares are held by institutional investors. 32.8% of Forum Energy Technologies shares are held by company insiders. Comparatively, 11.1% of Eco-Stim Energy Solutions shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Forum Energy Technologies has a beta of 1.96, indicating that its share price is 96% more volatile than the S&P 500. Comparatively, Eco-Stim Energy Solutions has a beta of 2.08, indicating that its share price is 108% more volatile than the S&P 500.

Profitability

This table compares Forum Energy Technologies and Eco-Stim Energy Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Forum Energy Technologies -6.99% -2.98% -1.95%
Eco-Stim Energy Solutions -61.22% -35.19% -22.07%

Summary

Forum Energy Technologies beats Eco-Stim Energy Solutions on 7 of the 13 factors compared between the two stocks.

Forum Energy Technologies Company Profile

Forum Energy Technologies, Inc. designs, manufactures, and distributes products to the oil and natural gas industry in the United States and internationally. The company operates in three segments: Drilling & Subsea, Completions, and Production & Infrastructure. The Drilling & Subsea segment designs and manufactures products, and provides related services to the drilling, energy subsea construction and service markets, and other markets, such as alternative energy, defense, and communications. This segment offers drilling technologies consisting of capital equipment and a line of products consumed in the drilling; and subsea technologies, including robotic vehicles and other capital equipment, specialty components and tools, complementary subsea technical services and rental items, and products used in pipeline infrastructure. The Completions segment provides products and related services to the well construction, completion, stimulation, and intervention markets. This segment offers downhole technologies comprising cementing and casing tools, completion products, and a range of downhole cable protection solutions; and stimulation and intervention technologies, including pumps and well stimulation consumable products, and related recertification and refurbishment services. The Production & Infrastructure segment designs, manufactures, and supplies products, and provides related equipment and services to the production and infrastructure markets. This segment supplies production equipment, including well site production and process equipment; and a range of industrial and process valves. The company was formerly known as Forum Oilfield Technologies, Inc. and changed its name to Forum Energy Technologies, Inc. in August 2010. Forum Energy Technologies, Inc. was incorporated in 2005 and is headquartered in Houston, Texas.

Eco-Stim Energy Solutions Company Profile

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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