Comparing CSI Compressco (CCLP) and Eco-Stim Energy Solutions (ESES)

CSI Compressco (NASDAQ: CCLP) and Eco-Stim Energy Solutions (NASDAQ:ESES) 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 profitability, analyst recommendations, valuation, institutional ownership, dividends, earnings and risk.

Analyst Ratings

This is a breakdown of current ratings and target prices for CSI Compressco and Eco-Stim Energy Solutions, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CSI Compressco 1 3 0 0 1.75
Eco-Stim Energy Solutions 0 1 4 0 2.80

CSI Compressco currently has a consensus price target of $5.33, indicating a potential upside of 3.56%. Eco-Stim Energy Solutions has a consensus price target of $2.36, indicating a potential upside of 58.39%. Given Eco-Stim Energy Solutions’ stronger consensus rating and higher possible upside, analysts clearly believe Eco-Stim Energy Solutions is more favorable than CSI Compressco.

Volatility and Risk

CSI Compressco has a beta of 2.05, indicating that its stock price is 105% more volatile than the S&P 500. Comparatively, Eco-Stim Energy Solutions has a beta of 2.13, indicating that its stock price is 113% more volatile than the S&P 500.

Institutional & Insider Ownership

27.9% of CSI Compressco shares are held by institutional investors. Comparatively, 84.3% of Eco-Stim Energy Solutions shares are held by institutional investors. 11.1% of Eco-Stim Energy Solutions 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.

Profitability

This table compares CSI Compressco and Eco-Stim Energy Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CSI Compressco -14.20% -35.88% -5.70%
Eco-Stim Energy Solutions -85.29% -43.11% -23.60%

Valuation and Earnings

This table compares CSI Compressco and Eco-Stim Energy Solutions’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CSI Compressco $311.36 million 0.60 -$138.13 million ($1.25) -4.12
Eco-Stim Energy Solutions $8.35 million 13.30 -$17.92 million ($1.09) -1.37

Eco-Stim Energy Solutions has lower revenue, but higher earnings than CSI Compressco. CSI Compressco is trading at a lower price-to-earnings ratio than Eco-Stim Energy Solutions, indicating that it is currently the more affordable of the two stocks.

Dividends

CSI Compressco pays an annual dividend of $0.75 per share and has a dividend yield of 14.6%. Eco-Stim Energy Solutions does not pay a dividend. CSI Compressco pays out -60.0% of its earnings in the form of a dividend.

Summary

Eco-Stim Energy Solutions beats CSI Compressco on 9 of the 15 factors compared between the two stocks.

CSI Compressco Company Profile

CSI Compressco LP is a provider of compression services and equipment for natural gas and oil production, gathering, transportation, processing and storage. The Company sells custom-designed compressor packages and oilfield fluid pump systems, and provides aftermarket services and compressor package parts and components manufactured by third-party suppliers. It provides these compression services and equipment to a base of natural gas and oil exploration and production, midstream and transmission companies operating throughout many of the onshore producing regions of the United States, as well as in a number of foreign countries, including Mexico, Canada and Argentina. It is a service provider of natural gas compression services in the United States, utilizing its fleet of compressor packages that employs a spectrum of low-, medium- and high-horsepower engines. As of December 31, 2016, its fleet included approximately 6,000 compressor packages.

Eco-Stim Energy Solutions Company Profile

Eco-Stim Energy Solutions, Inc. is an oilfield services company. The Company provides well stimulation, coiled tubing and field management services to the upstream oil and gas industry. The Company focuses on the active shale and unconventional oil and natural gas basins outside the United States and it has commenced operations in Argentina. The Company operates well stimulation fleets, coiled tubing units and other downhole completion equipment, as well as provides sweet spot analysis in shale resource basins using geophysical predictive modeling combined with real-time feedback from down-hole diagnostic tools. The Company offers a pumping fleet, including well-stimulation pumps, nitrogen pumping units and cranes, in both trailer-mounted and skid-mounted configurations. It provides a range of pressure-pumping services, including work-over pumping, well injection and wireline pump downs.

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