RPC (NYSE:RES) and Natural Gas Services Group (NYSE:NGS) are both small-cap oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, profitability, dividends, valuation, analyst recommendations and institutional ownership.
Institutional & Insider Ownership
32.0% of RPC shares are owned by institutional investors. Comparatively, 89.8% of Natural Gas Services Group shares are owned by institutional investors. 73.2% of RPC shares are owned by company insiders. Comparatively, 6.2% of Natural Gas Services Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares RPC and Natural Gas Services Group’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|RPC||$1.72 billion||0.83||$175.40 million||$0.82||8.10|
|Natural Gas Services Group||$65.48 million||3.25||$430,000.00||$0.08||201.00|
RPC has higher revenue and earnings than Natural Gas Services Group. RPC is trading at a lower price-to-earnings ratio than Natural Gas Services Group, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations for RPC and Natural Gas Services Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Natural Gas Services Group||0||0||2||0||3.00|
RPC presently has a consensus price target of $12.28, suggesting a potential upside of 84.96%. Natural Gas Services Group has a consensus price target of $23.50, suggesting a potential upside of 46.14%. Given RPC’s higher probable upside, equities research analysts clearly believe RPC is more favorable than Natural Gas Services Group.
RPC pays an annual dividend of $0.20 per share and has a dividend yield of 3.0%. Natural Gas Services Group does not pay a dividend. RPC pays out 24.4% of its earnings in the form of a dividend. RPC has increased its dividend for 6 consecutive years.
This table compares RPC and Natural Gas Services Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Natural Gas Services Group||0.81%||0.46%||0.40%|
Risk and Volatility
RPC has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500. Comparatively, Natural Gas Services Group has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500.
RPC beats Natural Gas Services Group on 10 of the 16 factors compared between the two stocks.
RPC, Inc., through its subsidiaries, provides a range of oilfield services and equipment for the oil and gas companies involved in the exploration, production, and development of oil and gas properties. The company operates through Technical Services and Support Services segments. The Technical Services offers pressure pumping, fracturing, acidizing, downhole tools, coiled tubing, snubbing, nitrogen, well control, wireline, pump down, and fishing services that are used in the completion, production, and maintenance of oil and gas wells. The Support Services segment provides a range of rental tools, including blowout preventors, high pressure manifolds and valves, hevi-wate drill pipes, tubing products, production related rental tools, pumps, diverters, drill pipes, drill collars, handling tools, Coflexip hoses, and Wear Knot drill pipes that are used for onshore and offshore oil and gas well drilling, completion, and workover activities. This segment also offers oilfield pipe inspection, and pipe management and storage services; and oilfield training and consulting services. It operates in the United States, Africa, Canada, Argentina, China, Mexico, Eastern Europe, Latin America, the Middle East, and internationally. RPC, Inc. was founded in 1984 and is headquartered in Atlanta, Georgia.
About Natural Gas Services Group
Natural Gas Services Group, Inc. provides small to medium horsepower compression equipment to the natural gas industry in the United States. The company engages in the rental of small to medium horsepower compression equipment to non-conventional natural gas and oil production businesses. As of December 31, 2018, it had 2,572 natural gas compressors in its rental fleet totaling 398,765 horsepower. The company also assembles compressor components into compressor units for rent or sale; engineers and fabricates natural gas compressors; and designs and manufactures a line of reciprocating compressor frames, cylinders, and parts. In addition, it is involved in the design, fabrication, sale, installation, and service of flare stacks and related ignition and control devices for the onshore and offshore incineration of gas compounds, such as hydrogen sulfide, carbon dioxide, natural gas, and liquefied petroleum gases. Further, the company offers customer support services for its compressor and flare sales business; exchanges and rebuilds program for screw compressors; and maintains an inventory of new and used compressors. Natural Gas Services Group, Inc. was founded in 1998 and is headquartered in Midland, Texas.
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