Reviewing Solaris Oilfield Infrastructure (SOI) & CSI Compressco (CCLP)

Solaris Oilfield Infrastructure (NYSE: SOI) and CSI Compressco (NASDAQ:CCLP) are both small-cap energy companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, institutional ownership, earnings, valuation and profitability.

Profitability

This table compares Solaris Oilfield Infrastructure and CSI Compressco’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Solaris Oilfield Infrastructure 18.84% 10.16% 9.23%
CSI Compressco -14.20% -35.88% -5.70%

Valuation & Earnings

This table compares Solaris Oilfield Infrastructure and CSI Compressco’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Solaris Oilfield Infrastructure $18.15 million 42.74 $2.80 million $0.22 80.73
CSI Compressco $311.36 million 0.73 -$138.13 million ($1.21) -5.19

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

Analyst Ratings

This is a summary of recent recommendations for Solaris Oilfield Infrastructure and CSI Compressco, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Solaris Oilfield Infrastructure 0 1 12 0 2.92
CSI Compressco 1 3 0 0 1.75

Solaris Oilfield Infrastructure currently has a consensus target price of $19.50, suggesting a potential upside of 9.80%. CSI Compressco has a consensus target price of $6.00, suggesting a potential downside of 4.46%. Given Solaris Oilfield Infrastructure’s stronger consensus rating and higher probable upside, equities analysts plainly believe Solaris Oilfield Infrastructure is more favorable than CSI Compressco.

Dividends

CSI Compressco pays an annual dividend of $0.75 per share and has a dividend yield of 11.9%. Solaris Oilfield Infrastructure does not pay a dividend. CSI Compressco pays out -62.0% of its earnings in the form of a dividend.

Insider and Institutional Ownership

67.0% of Solaris Oilfield Infrastructure shares are owned by institutional investors. Comparatively, 29.6% of CSI Compressco shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Solaris Oilfield Infrastructure beats CSI Compressco on 11 of the 14 factors compared between the two stocks.

Solaris Oilfield Infrastructure Company Profile

Solaris Oilfield Infrastructure, Inc. manufactures and provides its mobile proppant management systems that unload, store and deliver proppant at oil and natural gas well sites. The Company offers its services to oil and natural gas exploration and production (E&P) companies, as well as oilfield service companies. Its mobile proppant system is designed to address the challenges associated with transferring large quantities of proppant to the well site, including the cost and management of last mile logistics. Its systems provide 2.5 million pounds of proppant storage capacity. The Company manufactures its systems at its facility in Early, Texas, The Company’s system provides Streamlined last mile logistics and Improved execution to meet completion designs. Its systems provide triple the storage capacity, such as trailer-mounted, hydraulically powered storage bins. Its integrated PropView system delivers real-time proppant inventory and consumption levels.

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.

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