Critical Contrast: Oceaneering International (OII) & Eco-Stim Energy Solutions (ESES)

Oceaneering International (NYSE: OII) and Eco-Stim Energy Solutions (NASDAQ:ESES) are both oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.

Earnings and Valuation

This table compares Oceaneering International and Eco-Stim Energy Solutions’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Oceaneering International $1.92 billion 1.26 $166.39 million ($0.07) -352.00
Eco-Stim Energy Solutions $44.02 million 1.41 -$26.94 million ($0.26) -3.19

Oceaneering International has higher revenue and earnings than Eco-Stim Energy Solutions. Oceaneering International 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

99.6% of Oceaneering International shares are held by institutional investors. Comparatively, 85.2% of Eco-Stim Energy Solutions shares are held by institutional investors. 1.1% of Oceaneering International shares are held by insiders. Comparatively, 4.7% of Eco-Stim Energy Solutions shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Oceaneering International pays an annual dividend of $0.15 per share and has a dividend yield of 0.6%. Eco-Stim Energy Solutions does not pay a dividend. Oceaneering International pays out -214.3% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current recommendations for Oceaneering International and Eco-Stim Energy Solutions, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oceaneering International 1 15 3 0 2.11
Eco-Stim Energy Solutions 0 1 4 0 2.80

Oceaneering International currently has a consensus target price of $22.85, suggesting a potential downside of 7.28%. Eco-Stim Energy Solutions has a consensus target price of $2.38, suggesting a potential upside of 186.14%. Given Eco-Stim Energy Solutions’ stronger consensus rating and higher probable upside, analysts clearly believe Eco-Stim Energy Solutions is more favorable than Oceaneering International.

Profitability

This table compares Oceaneering International and Eco-Stim Energy Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Oceaneering International 6.60% -2.77% -1.43%
Eco-Stim Energy Solutions -58.72% -40.56% -28.14%

Risk & Volatility

Oceaneering International has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500. Comparatively, Eco-Stim Energy Solutions has a beta of 2.19, suggesting that its share price is 119% more volatile than the S&P 500.

Summary

Oceaneering International beats Eco-Stim Energy Solutions on 9 of the 15 factors compared between the two stocks.

About Oceaneering International

Oceaneering International, Inc. provides engineered services and products to the offshore oil and gas, defense, aerospace, and commercial theme park industries worldwide. The company's Remotely Operated Vehicles (ROVs) segment offers submersible vehicles for drill support, vessel-based inspection, maintenance and repair, installation and construction support, pipeline inspection and surveys, and subsea production facility operation and maintenance services. As of December 31, 2017, this segment owned 279 work-class ROVs. The company's Subsea Products segment constructs various specialty subsea hardware products, including subsea umbilicals utilizing thermoplastic hoses and steel tubes; termination assemblies; tooling, ROV tooling, and subsea work packages; production control equipment; installation and workover control systems; clamp connectors; pipeline connector and repair systems; subsea and topside control valves; and subsea chemical injection valves, as well as offers riserless light well intervention services. Its Subsea Projects segment performs subsea oilfield hardware installation and inspection, maintenance, and repair services; serves shallow water projects; and performs subsea intervention and hardware installation services, such as subsea well tie-backs, pipeline/flowline tie-ins and repairs, pipeline crossing, and umbilical and other subsea equipment installations, and subsea intervention services. The company's Asset Integrity segment offers asset integrity services for the safety of their facilities onshore and offshore; third-party inspections to customers in the oil and gas, petrochemical, and power generation industries; and first-pass integrity evaluation and assessment, and nondestructive testing services. Its Advanced Technologies segment provides project management, engineering services, and equipment for applications in non-energy markets. The company was founded in 1964 and is headquartered in Houston, Texas.

About Eco-Stim Energy Solutions

Eco-Stim Energy Solutions, Inc. provides oilfield services in the United States and Argentina. The company offers pressure pumping, coiled tubing, and field management services to the upstream oil and gas industry. Its customers consist primarily of international oil and gas exploration and production companies, including national oil companies, local privately-held exploration and production companies, and other service companies. The company is headquartered in Houston, Texas.

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