CSI Compressco (NASDAQ: CCLP) and Halliburton (NYSE:HAL) are both oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, profitability, valuation, dividends and risk.
Earnings & Valuation
This table compares CSI Compressco and Halliburton’s top-line revenue, earnings per share and valuation.
||Earnings Per Share
CSI Compressco has higher earnings, but lower revenue than Halliburton. CSI Compressco is trading at a lower price-to-earnings ratio than Halliburton, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent recommendations and price targets for CSI Compressco and Halliburton, as provided by MarketBeat.
||Strong Buy Ratings
CSI Compressco currently has a consensus target price of $5.33, indicating a potential downside of 23.81%. Halliburton has a consensus target price of $56.21, indicating a potential upside of 5.78%. Given Halliburton’s stronger consensus rating and higher probable upside, analysts plainly believe Halliburton is more favorable than CSI Compressco.
This table compares CSI Compressco and Halliburton’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Volatility & Risk
CSI Compressco has a beta of 2.05, meaning that its stock price is 105% more volatile than the S&P 500. Comparatively, Halliburton has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500.
Insider & Institutional Ownership
27.4% of CSI Compressco shares are owned by institutional investors. Comparatively, 79.8% of Halliburton shares are owned by institutional investors. 0.5% of Halliburton shares are owned by 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.
CSI Compressco pays an annual dividend of $0.75 per share and has a dividend yield of 10.7%. Halliburton pays an annual dividend of $0.72 per share and has a dividend yield of 1.4%. CSI Compressco pays out -60.0% of its earnings in the form of a dividend. Halliburton pays out 300.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CSI Compressco is clearly the better dividend stock, given its higher yield and lower payout ratio.
Halliburton beats CSI Compressco on 11 of the 15 factors compared between the two stocks.
About CSI Compressco
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.
Halliburton Company provides services and products to the upstream oil and natural gas industry throughout the lifecycle of the reservoir, from locating hydrocarbons and managing geological data, to drilling and formation evaluation, well construction and completion, and optimizing production throughout the life of the field. It operates through two segments: the Completion and Production segment, and the Drilling and Evaluation segment. The Completion and Production segment delivers cementing, stimulation, intervention, pressure control, specialty chemicals, artificial lift and completion services. The Drilling and Evaluation segment provides field and reservoir modeling, drilling, evaluation and wellbore placement solutions that enable customers to model, measure, drill and optimize their well construction activities. It serves national and independent oil and natural gas companies. As of December 31, 2016, it had conducted business in approximately 70 countries around the world.
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