Head-To-Head Contrast: Flotek Industries (NYSE:FTK) vs. ProFrac (NASDAQ:ACDC)

ProFrac (NASDAQ:ACDC) and Flotek Industries (NYSE:FTK) are both small-cap energy companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.

Analyst Recommendations

This is a summary of current recommendations and price targets for ProFrac and Flotek Industries, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ProFrac	3	3	1	0	1.71
Flotek Industries	0	2	3	0	2.60

ProFrac presently has a consensus price target of $5.63, indicating a potential downside of 7.48%. Flotek Industries has a consensus price target of $21.33, indicating a potential upside of 33.48%. Given Flotek Industries’ stronger consensus rating and higher probable upside, analysts clearly believe Flotek Industries is more favorable than ProFrac.

Earnings and Valuation

This table compares ProFrac and Flotek Industries”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ProFrac	$1.94 billion	0.57	-$369.00 million	($2.20)	-2.76
Flotek Industries	$237.26 million	2.44	$30.53 million	$0.83	19.26

Flotek Industries has lower revenue, but higher earnings than ProFrac. ProFrac is trading at a lower price-to-earnings ratio than Flotek Industries, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

12.8% of ProFrac shares are held by institutional investors. Comparatively, 10.9% of Flotek Industries shares are held by institutional investors. 2.6% of ProFrac shares are held by insiders. Comparatively, 3.0% of Flotek Industries shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares ProFrac and Flotek Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ProFrac	-18.97%	-33.18%	-11.22%
Flotek Industries	12.87%	21.32%	11.41%

Risk & Volatility

ProFrac has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500. Comparatively, Flotek Industries has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500.

Summary

Flotek Industries beats ProFrac on 12 of the 14 factors compared between the two stocks.

About ProFrac

ProFrac Holding Corp. operates as a technology-focused energy services holding company in the United States. It operates through three segments: Stimulation Services, Manufacturing, and Proppant Production. The company offers hydraulic fracturing, well stimulation, in-basin frac sand, and other completion services and complementary products and services to upstream oil and natural gas companies engaged in the exploration and production of unconventional oil and natural gas resources. It also manufactures and sells high horsepower pumps, valves, piping, swivels, large-bore manifold systems, and fluid ends. ProFrac Holding Corp. was founded in 2016 and is headquartered in Willow Park, Texas.

About Flotek Industries

Flotek Industries, Inc. operates as a technology-driven green chemistry and data company that serves customers across industrial and commercial markets in the United States, the United Arab Emirates, and internationally. It operates through two segments: Chemistry Technologies (CT) and Data Analytics (DA). The CT segment designs, develops, manufactures, packages, distributes, delivers, and markets green specialty chemicals that enhance the profitability of hydrocarbon producers, as well as green specialty chemistries, and logistics and technology services. This segment primarily serves integrated oil and gas, oilfield services, independent oil and gas, national and state-owned oil, geothermal energy, solar energy, and alternative energy companies. The DA segment designs, develops, produces, sells, and supports equipment and services that create and provide valuable information on the composition and properties of energy customers' hydrocarbon fluids. It sells its products directly through a mix of in-house sales professionals, as well as contractual agency agreements. Flotek Industries, Inc. was incorporated in 1985 and is headquartered in Houston, Texas.