Head to Head Survey: Flotek Industries (FTK) and McDermott International (NYSE:MDR)

Flotek Industries (NYSE: FTK) and McDermott International (NYSE:MDR) are both energy companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Earnings & Valuation

This table compares Flotek Industries and McDermott International’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Flotek Industries $262.83 million 1.27 -$49.13 million ($0.02) -294.00
McDermott International $2.64 billion 0.83 $34.11 million $0.53 14.53

McDermott International has higher revenue and earnings than Flotek Industries. Flotek Industries is trading at a lower price-to-earnings ratio than McDermott International, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Flotek Industries has a beta of 1.69, suggesting that its share price is 69% more volatile than the S&P 500. Comparatively, McDermott International has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500.

Profitability

This table compares Flotek Industries and McDermott International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Flotek Industries -4.31% -4.99% -3.87%
McDermott International 5.25% 9.56% 4.80%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Flotek Industries and McDermott International, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Flotek Industries 0 0 1 0 3.00
McDermott International 1 4 3 0 2.25

McDermott International has a consensus price target of $7.39, indicating a potential downside of 4.06%. Given McDermott International’s higher probable upside, analysts clearly believe McDermott International is more favorable than Flotek Industries.

Insider and Institutional Ownership

84.9% of Flotek Industries shares are held by institutional investors. Comparatively, 86.0% of McDermott International shares are held by institutional investors. 5.5% of Flotek Industries shares are held by company insiders. Comparatively, 1.3% of McDermott International 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.

Summary

McDermott International beats Flotek Industries on 10 of the 14 factors compared between the two stocks.

About Flotek Industries

Flotek Industries, Inc. is a technology-driven company. The Company develops and supplies chemistry and services to the oil and gas industries, and compounds to companies that make cleaning products, cosmetics, food and beverages, and other products that are sold in consumer and industrial markets. The Company operates through two segments: Energy Chemistry Technologies (ECT), and Consumer and Industrial Chemistry Technologies (CICT). The ECT segment designs, develops, manufactures, packages and markets chemistries for use in oil and gas well drilling, cementing, completion and stimulation activities. Its ECT segment’s services include Reservoir Characterization, Polymer Conformance and Logistics Management. The CICT segment sources citrus oil domestically and internationally, and processor of citrus oils in the world. The CICT segment designs, develops and manufactures products that are sold to companies in the flavor and fragrance industries and specialty chemical industry.

About McDermott International

McDermott International, Inc. is a provider of integrated engineering, procurement, construction and installation (EPCI), front-end engineering and design (FEED) and module fabrication services for upstream field developments across the world. The Company delivers fixed and floating production facilities, pipeline installations and subsea systems from concept to commissioning for offshore and subsea oil and gas projects. It operates through three segments: the Americas, Europe and Africa (AEA), the Middle East (MEA) and Asia (ASA). As of December 31, 2016, operated in approximately 20 countries across the Americas, Europe, Africa, the Middle East, Asia and Australia, its integrated resources include a diversified fleet of marine vessels, fabrication facilities and engineering offices. It support its activities with project management and procurement services, while utilizing its fully integrated capabilities in both shallow water and deepwater construction.

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