NexTier Oilfield Solutions (NYSE:NEX) vs. US Well Services (NYSE:USWS) Critical Analysis

NexTier Oilfield Solutions (NYSE:NEX) and US Well Services (NASDAQ:USWS) are both small-cap oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, earnings, profitability, valuation, risk, institutional ownership and dividends.

Volatility & Risk

NexTier Oilfield Solutions has a beta of 3.55, meaning that its share price is 255% more volatile than the S&P 500. Comparatively, US Well Services has a beta of 2.71, meaning that its share price is 171% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for NexTier Oilfield Solutions and US Well Services, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NexTier Oilfield Solutions 0 5 7 0 2.58
US Well Services 0 2 1 0 2.33

NexTier Oilfield Solutions presently has a consensus price target of $3.64, indicating a potential upside of 26.96%. US Well Services has a consensus price target of $5.00, indicating a potential upside of 1,008.65%. Given US Well Services’ higher probable upside, analysts clearly believe US Well Services is more favorable than NexTier Oilfield Solutions.

Valuation and Earnings

This table compares NexTier Oilfield Solutions and US Well Services’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NexTier Oilfield Solutions $1.82 billion 0.34 -$106.16 million ($0.23) -12.48
US Well Services $514.76 million 0.06 -$93.91 million ($1.72) -0.26

US Well Services has lower revenue, but higher earnings than NexTier Oilfield Solutions. NexTier Oilfield Solutions is trading at a lower price-to-earnings ratio than US Well Services, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares NexTier Oilfield Solutions and US Well Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NexTier Oilfield Solutions -7.70% -3.63% -1.72%
US Well Services -50.10% -67.12% -14.51%

Insider and Institutional Ownership

90.5% of NexTier Oilfield Solutions shares are held by institutional investors. Comparatively, 60.9% of US Well Services shares are held by institutional investors. 2.9% of NexTier Oilfield Solutions shares are held by insiders. Comparatively, 10.5% of US Well Services shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

NexTier Oilfield Solutions beats US Well Services on 10 of the 14 factors compared between the two stocks.

NexTier Oilfield Solutions Company Profile

NexTier Oilfield Solutions Inc. provides integrated well completion services primarily in the United States. Its principal service offerings include horizontal and vertical fracturing, wireline perforation and logging, and engineered solutions. The company also provides cementing and drilling services; and engineering software and technical guidance for remedial cementing applications and acidizing. Its customers primarily include integrated and large independent oil and natural gas exploration and production companies. The company has 29 hydraulic fracturing fleets, 34 wireline trucks, 24 cementing pumps, and other ancillary assets located in the Permian Basin, the Marcellus Shale/Utica Shale, the Eagle Ford Formation, the Bakken Formation, and other active oil and gas basins. NexTier Oilfield Solutions Inc. was founded in 1973 and is headquartered in Houston, Texas. NexTier Oilfield Solutions Inc. is a subsidiary of Keane Investor Holdings LLC.

US Well Services Company Profile

U.S. Well Services, Inc. operates as an oilfield service company in the United States. It provides hydraulic fracturing services for the oil and natural gas exploration and production companies. The company is headquartered in Houston, Texas.

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