Financial Review: Ranger Energy Services (RNGR) vs. Gulf Island Fabrication (GIFI)

Ranger Energy Services (NYSE: RNGR) and Gulf Island Fabrication (NASDAQ:GIFI) are both small-cap oils/energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, earnings and valuation.

Analyst Recommendations

This is a summary of recent ratings and price targets for Ranger Energy Services and Gulf Island Fabrication, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ranger Energy Services 0 3 5 0 2.63
Gulf Island Fabrication 0 0 0 0 N/A

Ranger Energy Services currently has a consensus price target of $17.25, indicating a potential upside of 86.89%. Given Ranger Energy Services’ higher possible upside, equities research analysts plainly believe Ranger Energy Services is more favorable than Gulf Island Fabrication.

Insider & Institutional Ownership

32.4% of Ranger Energy Services shares are owned by institutional investors. Comparatively, 63.8% of Gulf Island Fabrication shares are owned by institutional investors. 3.4% of Gulf Island Fabrication shares are owned by 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.

Earnings and Valuation

This table compares Ranger Energy Services and Gulf Island Fabrication’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ranger Energy Services $52.80 million 2.67 -$5.00 million N/A N/A
Gulf Island Fabrication $286.33 million 0.66 $3.51 million ($1.62) -7.84

Gulf Island Fabrication has higher revenue and earnings than Ranger Energy Services.

Profitability

This table compares Ranger Energy Services and Gulf Island Fabrication’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ranger Energy Services -14.29% -14.10% -10.47%
Gulf Island Fabrication -12.71% -9.45% -7.70%

Dividends

Gulf Island Fabrication pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. Ranger Energy Services does not pay a dividend. Gulf Island Fabrication pays out -2.5% of its earnings in the form of a dividend.

Summary

Gulf Island Fabrication beats Ranger Energy Services on 9 of the 12 factors compared between the two stocks.

Ranger Energy Services Company Profile

Ranger Energy Services, Inc. is an independent provider of high-specification (high-spec) well service rigs and associated services in the United States. The Company focuses on unconventional horizontal well completion and production operations. The Company operates through Well Services and Processing Solutions segment. Well Services segment provides high-spec well service rigs and complementary equipment and services in the United States, with a focus on unconventional horizontal well completion, workover and maintenance operations. Processing Solutions segment engages in the rental, installation, commissioning, start-up, operation and maintenance of MRUs, NGL stabilizer units, NGL storage units and related equipment. The Company also offers full transportation, turn-key mobilization services, installation and ongoing operation services in the field. The Company’s turn-key mobilization services include in-bound transportation and site offloading.

Gulf Island Fabrication Company Profile

Gulf Island Fabrication, Inc. (Gulf Island) is a holding company. The Company, along with its subsidiaries, is a fabricator of steel platforms and other specialized structures for customers in the offshore oil and gas industry. It also performs onshore and offshore construction and fabrication services for customers in the marine industry. Its primary activity is the fabrication of offshore drilling and production platforms and other steel structures for customers in the oil and gas and marine industries, including jackets and deck sections of fixed production platforms, hull, tendon, and/or deck sections of floating production platforms, piles, wellhead protectors. It conducts its operations through its subsidiaries, which include Gulf Island, L.L.C.; Gulf Marine Fabricators, L.P.; Gulf Island Marine Fabricators, L.L.C.; Gulf Island Shipyards, L.L.C.; Dolphin Services, L.L.C.; and Dolphin Steel Sales, L.L.C.

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