Comparing RPC (RES) and Oceaneering International (OII)

RPC (NYSE: RES) and Oceaneering International (NYSE:OII) are both mid-cap oils/energy companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Valuation and Earnings

This table compares RPC and Oceaneering International’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
RPC $1.60 billion 1.97 $162.51 million $0.66 22.08
Oceaneering International $1.92 billion 1.31 $166.39 million ($0.07) -363.71

Oceaneering International has higher revenue and earnings than RPC. Oceaneering International is trading at a lower price-to-earnings ratio than RPC, indicating that it is currently the more affordable of the two stocks.

Dividends

RPC pays an annual dividend of $0.40 per share and has a dividend yield of 2.7%. Oceaneering International pays an annual dividend of $0.15 per share and has a dividend yield of 0.6%. RPC pays out 60.6% of its earnings in the form of a dividend. Oceaneering International pays out -214.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. RPC has raised its dividend for 5 consecutive years. RPC is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares RPC and Oceaneering International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RPC 12.17% 22.05% 17.11%
Oceaneering International 6.60% -2.77% -1.43%

Institutional and Insider Ownership

36.4% of RPC shares are held by institutional investors. Comparatively, 99.6% of Oceaneering International shares are held by institutional investors. 73.5% of RPC shares are held by insiders. Comparatively, 1.1% of Oceaneering International shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for RPC and Oceaneering International, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RPC 1 14 4 0 2.16
Oceaneering International 1 15 3 0 2.11

RPC presently has a consensus target price of $22.83, indicating a potential upside of 56.71%. Oceaneering International has a consensus target price of $22.85, indicating a potential downside of 10.27%. Given RPC’s stronger consensus rating and higher possible upside, research analysts plainly believe RPC is more favorable than Oceaneering International.

Volatility & Risk

RPC has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, Oceaneering International has a beta of 1.38, indicating that its stock price is 38% more volatile than the S&P 500.

Summary

RPC beats Oceaneering International on 11 of the 16 factors compared between the two stocks.

RPC Company Profile

RPC, Inc. provides a range of oilfield services and equipment for the oil and gas companies involved in the exploration, production, and development of oil and gas properties. The company operates through Technical Services and Support Services segments. The Technical Services offers pressure pumping, fracturing, acidizing, downhole tools, coiled tubing, snubbing, nitrogen, well control, wireline, pump down, and fishing services that are used in the completion, production, and maintenance of oil and gas wells. The Support Services segment provides a range of rental tools, including blowout preventors, high pressure manifolds and valves, hevi-wate drill pipes, tubing products, production related rental tools, pumps, diverters, drill pipes, drill collars, handling tools, Coflexip hoses, and Wear Knot drill pipes that are used for onshore and offshore oil and gas well drilling, completion, and workover activities. This segment also offers oilfield pipe inspection, and pipe management and storage services; and oilfield training and consulting services. It operates in the United States, Africa, Canada, Argentina, China, Mexico, Eastern Europe, Latin America, the Middle East, and internationally. RPC, Inc. was founded in 1984 and is headquartered in Atlanta, Georgia.

Oceaneering International Company Profile

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.

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