Critical Review: CARBO Ceramics (CRR) and Oasis Midstream Partners (OMP)

CARBO Ceramics (NYSE: CRR) and Oasis Midstream Partners (NYSE:OMP) are both small-cap energy companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, valuation, analyst recommendations, earnings and risk.

Insider and Institutional Ownership

74.4% of CARBO Ceramics shares are held by institutional investors. Comparatively, 25.5% of Oasis Midstream Partners shares are held by institutional investors. 16.2% of CARBO Ceramics shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares CARBO Ceramics and Oasis Midstream Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CARBO Ceramics -79.49% -16.48% -13.73%
Oasis Midstream Partners N/A N/A N/A

Valuation and Earnings

This table compares CARBO Ceramics and Oasis Midstream Partners’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CARBO Ceramics $103.05 million 3.16 -$80.12 million ($9.41) -1.27
Oasis Midstream Partners $120.85 million 4.19 $40.12 million $1.81 10.18

Oasis Midstream Partners has higher revenue and earnings than CARBO Ceramics. CARBO Ceramics is trading at a lower price-to-earnings ratio than Oasis Midstream Partners, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and target prices for CARBO Ceramics and Oasis Midstream Partners, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CARBO Ceramics 1 3 1 0 2.00
Oasis Midstream Partners 0 2 8 0 2.80

CARBO Ceramics presently has a consensus price target of $11.20, suggesting a potential downside of 6.51%. Oasis Midstream Partners has a consensus price target of $21.50, suggesting a potential upside of 16.72%. Given Oasis Midstream Partners’ stronger consensus rating and higher possible upside, analysts clearly believe Oasis Midstream Partners is more favorable than CARBO Ceramics.

Summary

Oasis Midstream Partners beats CARBO Ceramics on 11 of the 13 factors compared between the two stocks.

CARBO Ceramics Company Profile

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.

Oasis Midstream Partners Company Profile

Oasis Midstream Partners LP is a master limited partnership company. The Company is formed to own, develop, operate and acquire a diversified portfolio of midstream assets in North America that are integral to the oil and natural gas operations exclusively within the Williston Basin. The Company’s midstream services include gas gathering, compression, processing and gas lift services; crude gathering, stabilization, blending, storage and transportation services; produced water gathering and disposal services; and freshwater distribution services. The Company operates in two primary areas include Wild Basin and Outside of the Wild Basin.

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