Basic Energy Services (BAS) vs. North American Energy Partners (NOA) Head to Head Survey

Basic Energy Services (NYSE: BAS) and North American Energy Partners (NYSE:NOA) are both small-cap oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Analyst Ratings

This is a summary of current ratings and price targets for Basic Energy Services and North American Energy Partners, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Basic Energy Services 0 3 3 0 2.50
North American Energy Partners 0 0 1 0 3.00

Basic Energy Services presently has a consensus target price of $23.79, suggesting a potential upside of 77.51%. North American Energy Partners has a consensus target price of $9.00, suggesting a potential upside of 41.73%. Given Basic Energy Services’ higher possible upside, equities research analysts clearly believe Basic Energy Services is more favorable than North American Energy Partners.

Profitability

This table compares Basic Energy Services and North American Energy Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Basic Energy Services -9.66% -17.01% -7.10%
North American Energy Partners 2.44% 5.20% 2.03%

Dividends

North American Energy Partners pays an annual dividend of $0.06 per share and has a dividend yield of 0.9%. Basic Energy Services does not pay a dividend. North American Energy Partners pays out 42.9% of its earnings in the form of a dividend. North American Energy Partners has raised its dividend for 3 consecutive years.

Volatility and Risk

Basic Energy Services has a beta of 2.65, indicating that its share price is 165% more volatile than the S&P 500. Comparatively, North American Energy Partners has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500.

Earnings and Valuation

This table compares Basic Energy Services and North American Energy Partners’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Basic Energy Services $864.04 million 0.41 -$96.67 million ($2.33) -5.75
North American Energy Partners $225.58 million 0.77 $4.06 million $0.14 45.36

North American Energy Partners has lower revenue, but higher earnings than Basic Energy Services. Basic Energy Services is trading at a lower price-to-earnings ratio than North American Energy Partners, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

32.3% of North American Energy Partners shares are held by institutional investors. 2.0% of Basic Energy Services shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

North American Energy Partners beats Basic Energy Services on 11 of the 17 factors compared between the two stocks.

About Basic Energy Services

Basic Energy Services, Inc. provides well site services to oil and natural gas drilling and producing companies in the United States. Its Completion and Remedial Services segment offers pumping services, such as cementing, acidizing, fracturing, nitrogen, and pressure testing; rental and fishing tools; coiled tubing; snubbing services; thru-tubing; cased-hole wireline services; and underbalanced drilling in low pressure and fluid sensitive reservoirs. This segment operates 310 pumping units; and 36 air compressor packages. The company's Fluid Services segment is involved in the transportation of fluids; production of salt water; sale and transportation of fresh and brine water; rental of portable fracturing and test tanks; recycling and treatment of wastewater; operation of fresh water and brine source wells, and non-hazardous wastewater disposal wells; and preparation, construction, and maintenance of access roads, drilling locations, and production facilities. As of December 31, 2017, this segment owned and operated 975 fluid service trucks with an average fluid hauling capacity of up to 150 barrels apiece; and owned 85 salt water disposal facilities. Its Well Servicing segment provides services performed with a mobile well servicing rig and ancillary equipment, such as maintenance work, hoisting tools and equipment required by the operation, and plugging and abandonment services, as well as manufactures and sells workover rigs. As of December 31, 2017, this segment operated a fleet of 310 well servicing rigs. Its Contract Drilling segment employs drilling rigs and related equipment to penetrate the earth to a desired depth and initiate production. This segment owns and operates 11 land drilling rigs. The company was formerly known as Sierra Well Service, Inc. and changed its name to Basic Energy Services, Inc. in 2000. Basic Energy Services, Inc. was founded in 1992 and is headquartered in Fort Worth, Texas.

About North American Energy Partners

North American Energy Partners Inc., through its subsidiaries, provides a range of mining and heavy construction services to customers in the resource development and industrial construction sectors, primarily in Western Canada. The company offers construction and operations support services through various stages of an oil sands project's lifecycle. Its services include site clearing and access road construction; site development and underground utility installation; construction and relocation of mine site infrastructure; stripping, muskeg removal, and overburden removal; heavy equipment and labor supply; material hauling; and mine reclamation, and tailings pond construction and maintenance. The company also provides site development services for plants and refineries, including in situ oil sands facilities; and heavy and light civil construction services for various resource infrastructure projects. In addition, it offers heavy equipment maintenance services. Further, the company maintains a fleet of heavy and ancillary equipment for its maintenance and repair centers; and operates running maintenance and repair facilities at its oil sands mine sites. North American Energy Partners Inc. was founded in 1953 and is headquartered in Edmonton, Canada.

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