Matrix Service (NASDAQ: MTRX) and Layne Christensen (NASDAQ:LAYN) are both small-cap oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.
Valuation & Earnings
This table compares Matrix Service and Layne Christensen’s revenue, earnings per share (EPS) and valuation.
||Earnings Per Share
Matrix Service has higher revenue and earnings than Layne Christensen. Matrix Service is trading at a lower price-to-earnings ratio than Layne Christensen, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and recommmendations for Matrix Service and Layne Christensen, as reported by MarketBeat.
||Strong Buy Ratings
Layne Christensen has a consensus target price of $11.00, indicating a potential downside of 25.68%. Given Layne Christensen’s higher possible upside, analysts plainly believe Layne Christensen is more favorable than Matrix Service.
This table compares Matrix Service and Layne Christensen’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Volatility & Risk
Matrix Service has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500. Comparatively, Layne Christensen has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500.
Insider & Institutional Ownership
91.5% of Matrix Service shares are held by institutional investors. Comparatively, 95.0% of Layne Christensen shares are held by institutional investors. 2.5% of Matrix Service shares are held by insiders. Comparatively, 12.0% of Layne Christensen shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Matrix Service beats Layne Christensen on 7 of the 12 factors compared between the two stocks.
Matrix Service Company Profile
Matrix Service Company provides engineering, fabrication, infrastructure, construction, and maintenance services primarily to the oil, gas, power, petrochemical, industrial, agricultural, and mining and minerals markets in the United States, Canada, and internationally. The company's Electrical Infrastructure segment offers construction and maintenance services to various power generation facilities, such as combined cycle plants, natural gas fired power stations, and renewable energy installations; and high voltage services comprising the construction of new substations, upgrading existing substations, short-run transmission line installations, distribution upgrades and maintenance, and storm restoration services to investor owned utilities. Its Oil Gas & Chemical segment provides turnaround, plant maintenance, engineering, and construction services for the downstream and midstream petroleum industries; and hydro blasting, hydro excavating, chemical cleaning, and vacuum services, as well as performs work in the petrochemical, natural gas, gas processing and compression, and upstream petroleum markets. The company's Storage Solutions segment constructs crude and refined products aboveground storage tanks; and provides planned and emergency maintenance services. This segment also undertakes work related to liquefied natural gas, liquid nitrogen/liquid oxygen, liquid petroleum tanks, and other specialty vessels, including spheres; and plant work in storage terminals and tank farms, as well as provides geodesic domes, aluminum internal floating roofs, floating suction and skimmer systems, roof drain systems, and floating roof seals. Its Industrial segment constructs and maintains work in the iron and steel, mining and minerals, and agricultural industries, as well as performs work in bulk material handling, fertilizer production facilities, thermal vacuum chambers, and other industrial markets. The company was founded in 1984 and is headquartered in Tulsa, Oklahoma.
Layne Christensen Company Profile
Layne Christensen Company operates as a water management, construction, and drilling company that provides solutions for the water, mineral, and energy markets in the United States and internationally. The company's Water Resources segment offers water-related products and services, including hydrologic design and construction; source of supply exploration; well and intake construction; and well and pump rehabilitation services. This segment also provides water treatment equipment engineering services and systems for the treatment of regulated and nuisance contaminants. Its Inliner segment provides process, sanitary, and storm water rehabilitation solutions to municipalities and industrial customers dealing with aging infrastructure needs, as well as other rehabilitative methods, such as Janssen structural renewal for service lateral connections and mainlines, slip lining, traditional excavation and replacement, and manhole renewal with cementitious and epoxy products. The company's Heavy Civil segment offers water and wastewater treatment plants design and construction, and pipeline installation services; provides surface water intakes, pumping stations, and hard rock tunnels; offers marine construction services; and designs and constructs biogas facilities. Its Mineral Services segment conducts above ground drilling activities comprising core drilling, reverse circulation, dual tube, hammer, and rotary air-blast methods; and provides exploratory and definition drilling services. The company serves government agencies, investor-owned utilities, industrial companies, global mining companies, consulting engineering firms, heavy civil construction contractors, oil and gas companies, power companies, and agribusinesses. The company was formerly known as Layne Inc. and changed its name to Layne Christensen Company in June 1996. Layne Christensen Company was founded in 1882 and is headquartered in The Woodlands, Texas.
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