Analyzing Basic Energy Services (BAS) and Its Competitors

Basic Energy Services (NYSE: BAS) is one of 31 publicly-traded companies in the “Oil & gas field services, not elsewhere classified” industry, but how does it contrast to its rivals? We will compare Basic Energy Services to similar companies based on the strength of its earnings, risk, institutional ownership, analyst recommendations, valuation, dividends and profitability.

Analyst Recommendations

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This is a breakdown of current ratings and target prices for Basic Energy Services and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Basic Energy Services 0 4 4 0 2.50
Basic Energy Services Competitors 237 1126 1710 75 2.52

Basic Energy Services presently has a consensus target price of $28.57, indicating a potential upside of 108.86%. As a group, “Oil & gas field services, not elsewhere classified” companies have a potential upside of 27.67%. Given Basic Energy Services’ higher possible upside, equities research analysts plainly believe Basic Energy Services is more favorable than its rivals.

Institutional and Insider Ownership

60.3% of shares of all “Oil & gas field services, not elsewhere classified” companies are owned by institutional investors. 11.1% of Basic Energy Services shares are owned by company insiders. Comparatively, 18.7% of shares of all “Oil & gas field services, not elsewhere classified” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Basic Energy Services and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Basic Energy Services $864.04 million -$96.67 million -5.87
Basic Energy Services Competitors $3.98 billion $67.54 million -5.11

Basic Energy Services’ rivals have higher revenue and earnings than Basic Energy Services. Basic Energy Services is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

Basic Energy Services has a beta of 2.68, meaning that its share price is 168% more volatile than the S&P 500. Comparatively, Basic Energy Services’ rivals have a beta of 1.31, meaning that their average share price is 31% more volatile than the S&P 500.

Profitability

This table compares Basic Energy Services and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Basic Energy Services -11.19% -16.12% -7.15%
Basic Energy Services Competitors -4.65% -0.24% -1.17%

Summary

Basic Energy Services rivals beat Basic Energy Services on 11 of the 13 factors compared.

About Basic Energy Services

Basic Energy Services, Inc. provides a range of well site services in the United States to oil and natural gas drilling and producing companies, including completion and remedial services, fluid services, well servicing and contract drilling. The Company operates through the segment, which include Completion and Remedial Services, Fluid Services, Well Servicing and Contract Drilling. The Company’s operations are managed regionally and are concentrated in the United States onshore oil and natural gas producing regions located in Texas, New Mexico, Oklahoma, Arkansas, Kansas, Louisiana, Wyoming, North Dakota, Colorado, Utah, Montana, West Virginia, California, Ohio and Pennsylvania. Its operations are focused on liquids-rich basins, as well as natural gas-focused shale plays characterized by prolific reserves. It has a presence in the Permian Basin and the Bakken, Eagle Ford, Haynesville and Marcellus shales.

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