Reviewing Tetra Technologies (TTI) & Carbo Ceramics (CRR)

Tetra Technologies (NYSE: TTI) and Carbo Ceramics (NYSE:CRR) are both small-cap oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, analyst recommendations, institutional ownership, dividends, profitability, earnings and risk.

Earnings and Valuation

This table compares Tetra Technologies and Carbo Ceramics’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Tetra Technologies $694.76 million 0.61 -$161.46 million ($0.42) -8.67
Carbo Ceramics $103.05 million 2.49 -$80.12 million ($4.69) -2.01

Carbo Ceramics has higher revenue, but lower earnings than Tetra Technologies. Tetra Technologies is trading at a lower price-to-earnings ratio than Carbo Ceramics, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

90.6% of Tetra Technologies shares are held by institutional investors. Comparatively, 71.8% of Carbo Ceramics shares are held by institutional investors. 3.6% of Tetra Technologies shares are held by company insiders. Comparatively, 16.2% of Carbo Ceramics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Tetra Technologies has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500. Comparatively, Carbo Ceramics has a beta of 1.91, indicating that its share price is 91% more volatile than the S&P 500.

Profitability

This table compares Tetra Technologies and Carbo Ceramics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tetra Technologies -5.47% -6.89% -2.05%
Carbo Ceramics -79.49% -15.58% -13.10%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Tetra Technologies and Carbo Ceramics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tetra Technologies 0 4 10 0 2.71
Carbo Ceramics 1 4 1 0 2.00

Tetra Technologies currently has a consensus target price of $5.10, suggesting a potential upside of 40.11%. Carbo Ceramics has a consensus target price of $11.00, suggesting a potential upside of 16.40%. Given Tetra Technologies’ stronger consensus rating and higher possible upside, equities analysts clearly believe Tetra Technologies is more favorable than Carbo Ceramics.

Summary

Tetra Technologies beats Carbo Ceramics on 9 of the 13 factors compared between the two stocks.

About Tetra Technologies

TETRA Technologies, Inc. is an oil and gas services company. The Company focuses on completion fluids and associated products and services, water management, production well testing, offshore rig cooling, compression services and equipment, and offshore services, such as decommissioning and diving. It is composed of five segments organized into four divisions: Fluids, Production Testing, Compression and Offshore. The Fluids division manufactures and markets clear brine fluids, additives and associated products and services to the oil and gas industry. Its Production Testing division provides frac flowback services, production well testing services, offshore rig cooling and other associated services in various oil and gas producing regions. The Compression division provides compression services and equipment for natural gas and oil production, gathering, transportation, processing and storage. The Offshore division consists of two operating segments: Offshore Services and Maritech.

About Carbo Ceramics

CARBO Ceramics Inc. is a technology company that provides products and services to the global oil and gas and industrial markets. The Company operates through two segments: Oilfield Technologies and Services, and Environmental Products and Services. The Company’s oilfield technologies and services segment includes the manufacturing and selling of proppant products for use primarily in the hydraulic fracturing of oil and natural gas wells, Fracpro software for the design of fracture treatments, and StrataGen consulting services for the optimizing of well completions. The Company’s environmental products and services segment is intended to protect operators’ assets, minimize environmental risks, and lower lease operating expense (LOE). The Company, through Asset Guard Products Inc. (AGPI), provides spill prevention, containment and countermeasure systems for the oil and gas industry. The Company manufactures various ceramic proppants.

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