Keane Group (NYSE: FRAC) and Willbros Group (NYSE:WG) are both small-cap energy companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, valuation and risk.

Earnings and Valuation

This table compares Keane Group and Willbros Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Keane Group $420.57 million 4.19 -$187.08 million ($1.22) -12.91
Willbros Group $731.68 million 0.10 -$47.75 million ($1.08) -1.12

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

Profitability

This table compares Keane Group and Willbros Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Keane Group -9.90% -19.19% -8.80%
Willbros Group -8.45% -54.91% -16.66%

Insider and Institutional Ownership

38.3% of Keane Group shares are owned by institutional investors. Comparatively, 65.6% of Willbros Group shares are owned by institutional investors. 2.1% of Willbros Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for Keane Group and Willbros Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Keane Group 0 9 10 0 2.53
Willbros Group 0 0 0 0 N/A

Keane Group currently has a consensus price target of $20.78, indicating a potential upside of 31.92%. Willbros Group has a consensus price target of $1.35, indicating a potential upside of 11.57%. Given Keane Group’s higher possible upside, analysts clearly believe Keane Group is more favorable than Willbros Group.

Summary

Willbros Group beats Keane Group on 6 of the 11 factors compared between the two stocks.

About Keane Group

Keane Group, Inc. is provider of integrated well completion services in the United States, with a focus on demanding completion solutions. The Company’s segments include Completion Services, which comprises hydraulic fracturing and wireline divisions, and Other Services, which consists of coiled tubing, cementing and drilling divisions. It provides hydraulic fracturing and wireline services pursuant to contractual arrangements, such as term contracts and pricing agreements, or on a spot market basis. It provides certain complementary services such as coiled tubing, cementing and drilling pursuant to contractual arrangements, such as term contracts on a spot basis. Its primary services include horizontal and vertical fracturing, wireline perforation and logging and engineered solutions, as well as other value-added service offerings. As of July 3, 2017, the Company had approximately 1.2 million hydraulic horsepower spread across 23 hydraulic fracturing fleets and 31 wireline trucks.

About Willbros Group

Willbros Group, Inc. is a specialty energy infrastructure contractor serving the oil and gas and power industries with offerings that primarily include construction, maintenance and facilities development services. The Company operates through three segments: Oil & Gas, Utility T&D and Canada. The Company provides services through operating subsidiaries. The Company’s segments operated primarily in the United States and Canada. The Company provides construction, maintenance and lifecycle extension services to the midstream markets. The Company provides a range of services in electric and natural gas transmission and distribution, including engineering, procurement, maintenance and construction, repair and restoration of utility infrastructure. It is engaged in construction, maintenance and fabrication, including integrity and supporting civil work, general mechanical and facility construction, application program interface (API) storage tanks, general and modular fabrication.

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