Comparing Eco-Stim Energy Solutions (ESES) and National-Oilwell Varco (NOV)

Eco-Stim Energy Solutions (NASDAQ: ESES) and National-Oilwell Varco (NYSE:NOV) are both oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, earnings, analyst recommendations, risk, profitability, valuation and institutional ownership.

Dividends

National-Oilwell Varco pays an annual dividend of $0.20 per share and has a dividend yield of 0.5%. Eco-Stim Energy Solutions does not pay a dividend. National-Oilwell Varco pays out -8.0% of its earnings in the form of a dividend.

Profitability

This table compares Eco-Stim Energy Solutions and National-Oilwell Varco’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Eco-Stim Energy Solutions -85.29% -43.11% -23.60%
National-Oilwell Varco -13.33% -1.41% -0.94%

Risk & Volatility

Eco-Stim Energy Solutions has a beta of 2.13, meaning that its share price is 113% more volatile than the S&P 500. Comparatively, National-Oilwell Varco has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Eco-Stim Energy Solutions and National-Oilwell Varco, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eco-Stim Energy Solutions 0 0 5 0 3.00
National-Oilwell Varco 3 17 6 0 2.12

Eco-Stim Energy Solutions presently has a consensus target price of $2.36, suggesting a potential upside of 73.53%. National-Oilwell Varco has a consensus target price of $37.76, suggesting a potential downside of 0.57%. Given Eco-Stim Energy Solutions’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Eco-Stim Energy Solutions is more favorable than National-Oilwell Varco.

Valuation & Earnings

This table compares Eco-Stim Energy Solutions and National-Oilwell Varco’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Eco-Stim Energy Solutions $8.35 million 12.14 -$17.92 million ($1.09) -1.25
National-Oilwell Varco $7.25 billion 1.99 -$2.41 billion ($2.49) -15.25

Eco-Stim Energy Solutions has higher earnings, but lower revenue than National-Oilwell Varco. National-Oilwell Varco 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.

Institutional and Insider Ownership

84.1% of Eco-Stim Energy Solutions shares are held by institutional investors. Comparatively, 92.4% of National-Oilwell Varco shares are held by institutional investors. 11.1% of Eco-Stim Energy Solutions shares are held by company insiders. Comparatively, 0.2% of National-Oilwell Varco 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.

Summary

National-Oilwell Varco beats Eco-Stim Energy Solutions on 8 of the 15 factors compared between the two stocks.

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.

National-Oilwell Varco Company Profile

National Oilwell Varco, Inc. is an oilfield equipment manufacturer and technology provider. The Company operates through four segments: Rig Systems, Rig Aftermarket, Wellbore Technologies and Completion & Production Solutions. The Rig Systems segment makes and supports the capital equipment and integrated systems needed to drill oil and gas wells on land and offshore. The Rig Systems segment designs, manufactures and sells land rigs, offshore drilling equipment packages, and drilling rig components. The Rig Aftermarket segment provides aftermarket products and services to support a large installed base of land and offshore rigs, and drilling rig components manufactured by the Company’s Rig Systems segment. The Wellbore Technologies segment designs, manufactures, rents and sells a range of equipment and technologies used to perform drilling operations. The Completion & Production Solutions segment integrates technologies for well completions and oil and gas production.

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