ProPetro (NYSE:PUMP) & TerraVest Industries (OTCMKTS:TRRVF) Critical Review

TerraVest Industries (OTCMKTS:TRRVF) and ProPetro (NYSE:PUMP) are both energy companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Profitability

This table compares TerraVest Industries and ProPetro’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TerraVest Industries	N/A	N/A	N/A
ProPetro	-1.15%	-1.49%	-0.89%

Earnings and Valuation

This table compares TerraVest Industries and ProPetro”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TerraVest Industries	N/A	N/A	N/A	$0.57	151.05
ProPetro	$1.27 billion	1.09	$820,000.00	($0.11)	-102.00

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

Institutional and Insider Ownership

41.5% of TerraVest Industries shares are owned by institutional investors. Comparatively, 84.7% of ProPetro shares are owned by institutional investors. 1.5% of ProPetro shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for TerraVest Industries and ProPetro, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TerraVest Industries	0	0	0	0	0.00
ProPetro	1	2	8	0	2.64

ProPetro has a consensus target price of $16.12, suggesting a potential upside of 43.72%. Given ProPetro’s stronger consensus rating and higher possible upside, analysts clearly believe ProPetro is more favorable than TerraVest Industries.

Summary

ProPetro beats TerraVest Industries on 6 of the 11 factors compared between the two stocks.

About TerraVest Industries

TerraVest Industries Inc. manufactures and sells goods and services to energy, agriculture, mining, transportation, and other markets in Canada and the United States. It operates through four segments: Home Heating and Cooling Products (HVAC Equipment); Compressed Gas Storage and Distribution Equipment (Compressed Gas Equipment); Energy Processing Equipment (Processing Equipment); and Service. The HVAC Equipment segment manufactures and distributes commercial and residential refined fuel tanks, furnaces, boilers, and air conditioning equipment and controls to fuel distributors, commercial and residential consumers. The Compressed Gas Equipment segment manufactures and sells engineered products for the storage, distribution and dispensing of compressed gases including liquid propane gas, natural gas liquids, liquified natural gas, anhydrous ammonia, carbon dioxide, and various gases; and bulk storage vessels, transport trailers, delivery units, dispensers, commercial and residential storage tanks, and other custom vessels. This segment sells its products to gas distributors, fertilizer distributors, farmers, midstream energy companies, and transportation companies. The Processing Equipment segment manufactures and sells a range of equipment, such as wellhead processing equipment and tanks, desanding units, biogas production equipment, water treatment equipment, and various custom process equipment. This segment offers its products to oil and gas producers, midstream and engineering companies, utilities, and municipalities. The Service segment provides water management, environmental, heating, rentals, and well services. The company was formerly known as TerraVest Capital Inc. and changed its name to TerraVest Industries Inc. in February 2018. TerraVest Industries Inc. was founded in 2004 and is headquartered in Vegreville, Canada.

About ProPetro

ProPetro Holding Corp. operates as an integrated oilfield services company. The company provides hydraulic fracturing, wireline, cementing, and other complementary oilfield completion services to upstream oil and gas companies in the Permian Basin. ProPetro Holding Corp. was founded in 2007 and is headquartered in Midland, Texas.