Forum Energy Technologies (NYSE: FET) and National Oilwell Varco (NYSE:NOV) are both energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, risk, institutional ownership, valuation, dividends and earnings.

Earnings and Valuation

This table compares Forum Energy Technologies and National Oilwell Varco’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Forum Energy Technologies $587.60 million 2.59 -$81.97 million ($1.26) -11.19
National Oilwell Varco $7.25 billion 1.71 -$2.41 billion ($2.49) -13.14

Forum Energy Technologies has higher earnings, but lower revenue than National Oilwell Varco. National Oilwell Varco is trading at a lower price-to-earnings ratio than Forum Energy Technologies, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Forum Energy Technologies has a beta of 1.66, suggesting that its stock price is 66% more volatile than the S&P 500. Comparatively, National Oilwell Varco has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500.

Profitability

This table compares Forum Energy Technologies and National Oilwell Varco’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Forum Energy Technologies -16.85% -3.97% -2.63%
National Oilwell Varco -13.33% -1.41% -0.94%

Analyst Recommendations

This is a summary of recent recommendations for Forum Energy Technologies and National Oilwell Varco, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Forum Energy Technologies 0 12 2 0 2.14
National Oilwell Varco 3 18 7 0 2.14

Forum Energy Technologies presently has a consensus price target of $17.92, indicating a potential upside of 27.11%. National Oilwell Varco has a consensus price target of $37.65, indicating a potential upside of 15.10%. Given Forum Energy Technologies’ higher probable upside, equities research analysts plainly believe Forum Energy Technologies is more favorable than National Oilwell Varco.

Dividends

National Oilwell Varco pays an annual dividend of $0.20 per share and has a dividend yield of 0.6%. Forum Energy Technologies does not pay a dividend. National Oilwell Varco pays out -8.0% of its earnings in the form of a dividend.

Insider & Institutional Ownership

98.7% of Forum Energy Technologies shares are owned by institutional investors. Comparatively, 92.6% of National Oilwell Varco shares are owned by institutional investors. 32.8% of Forum Energy Technologies shares are owned by insiders. Comparatively, 0.6% of National Oilwell Varco shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

About Forum Energy Technologies

Forum Energy Technologies, Inc. is an oilfield products company. The Company designs, manufactures and distributes products, and engages in aftermarket services, parts supply and related services. The Company operates through three segments: Drilling & Subsea, Completions, and Production & Infrastructure. The Drilling & Subsea segment designs and manufactures products, and provides related services to the drilling and subsea construction markets. The Completions segment designs, manufactures and supplies products, and provide related services to the well construction, completion, stimulation and intervention markets. The Production & Infrastructure segment designs, manufactures and supplies products, and provides related equipment and services to production and infrastructure markets. Its product offering includes a mix of engineered capital products and replaced items that are used in the exploration, development, production and transportation of oil and natural gas.

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.

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