Subsea 7 (OTC:SUBCY) versus Mammoth Energy Services (NASDAQ:TUSK) Critical Analysis

Mammoth Energy Services (NASDAQ:TUSK) and Subsea 7 (OTC:SUBCY) are both energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.

Analyst Ratings

This is a summary of current recommendations and price targets for Mammoth Energy Services and Subsea 7, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mammoth Energy Services	0	0	0	0	0.00
Subsea 7	0	1	0	0	2.00

Volatility & Risk

Mammoth Energy Services has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500. Comparatively, Subsea 7 has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500.

Dividends

Mammoth Energy Services pays an annual dividend of $0.50 per share and has a dividend yield of 18.5%. Subsea 7 pays an annual dividend of $1.16 per share and has a dividend yield of 6.1%. Mammoth Energy Services pays out -12.3% of its earnings in the form of a dividend. Subsea 7 pays out 181.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Mammoth Energy Services is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

79.7% of Mammoth Energy Services shares are held by institutional investors. Comparatively, 0.0% of Subsea 7 shares are held by institutional investors. 2.1% of Mammoth Energy Services shares are held by company insiders. Comparatively, 1.0% of Subsea 7 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.

Earnings & Valuation

This table compares Mammoth Energy Services and Subsea 7″s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mammoth Energy Services	$207.21 million	0.63	-$3.16 million	($4.08)	-0.66
Subsea 7	$5.97 billion	0.97	$15.40 million	$0.64	29.84

Subsea 7 has higher revenue and earnings than Mammoth Energy Services. Mammoth Energy Services is trading at a lower price-to-earnings ratio than Subsea 7, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Mammoth Energy Services and Subsea 7’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mammoth Energy Services	-105.49%	-53.85%	-35.56%
Subsea 7	2.46%	3.72%	1.98%

Summary

Subsea 7 beats Mammoth Energy Services on 10 of the 14 factors compared between the two stocks.

About Mammoth Energy Services

Mammoth Energy Services, Inc. operates as an energy services company in the United States, Canada, and internationally. The company operates in four segments: Well Completion Services, Infrastructure Services, Natural Sand Proppant Services, and Drilling Services. The company offers pressure pumping and hydraulic fracturing, sand hauling, and water transfer services; and master services agreements. It also provides a range of services on electric transmission and distribution, and networks and substation facilities, including engineering, design, construction, upgrade, maintenance, and repair of high voltage transmission lines, substations, and lower voltage overhead and underground distribution systems; storm repair and restoration services; and commercial services comprising installation, maintenance, and repair of commercial wiring. In addition, the company mines, processes, and sells natural sand proppant used for hydraulic fracturing; buys processed sand from suppliers on the spot market for resale; and provides logistics solutions to facilitate delivery of frac sand products. Further, it offers contract land and directional drilling services; and rig moving services. Additionally, the company offers aviation services, equipment rental, remote accommodation, and equipment manufacturing services. It serves government-funded, private, public investor-owned, and co-operative utilities; independent oil and natural gas producers; and land-based drilling contractors. The company was formerly known as Mammoth Energy Partners LP and changed its name to Mammoth Energy Services, Inc. in October 2016. Mammoth Energy Services, Inc. was founded in 2014 and is headquartered in Oklahoma City, Oklahoma.

About Subsea 7

Subsea 7 S.A. delivers offshore projects and services for the energy industry worldwide. It provides subsea field development products and services, including project management, design and engineering, procurement, fabrication, survey, installation, and commissioning of production facilities on the seabed and the tie-back of its facilities to fixed or floating platforms or to the shore. The company also offers engineering, procurement, commissioning, and installation of subsea umbilicals, risers, and flowlines; inspection, repair, maintenance, remote intervention, and integrity management of subsea infrastructure services; conventional services comprising fabrication, installation, extension, and refurbishment of fixed and floating platforms and associated pipelines in shallow water; and hook-up services. In addition, it operates heavy lifting operations and heavy transportation services for renewables structures; and installs offshore wind turbine foundations, as well as engages in the decommissioning of redundant offshore structures. Further, the company provides remotely operated vehicles (ROVs) and tooling services to support exploration and production activities, as well as engineering and advisory services for customers in the oil and gas, renewables, and utilities industries. The company was incorporated in 1993 and is based in Luxembourg, Luxembourg.