Contrasting Apergy (NYSE:APY) and ChampionX (NYSE:CHX)

Apergy (NYSE:APY) and ChampionX (NYSE:CHX) are both construction companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Earnings and Valuation

This table compares Apergy and ChampionX’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Apergy $1.13 billion 0.71 $52.16 million $0.99 10.44
ChampionX $1.13 billion 1.79 $52.16 million $0.99 10.21

ChampionX is trading at a lower price-to-earnings ratio than Apergy, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Apergy and ChampionX, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Apergy 0 4 5 0 2.56
ChampionX 0 1 2 0 2.67

Apergy presently has a consensus target price of $19.57, suggesting a potential upside of 89.29%. ChampionX has a consensus target price of $13.20, suggesting a potential upside of 30.56%. Given Apergy’s higher possible upside, equities analysts clearly believe Apergy is more favorable than ChampionX.

Institutional and Insider Ownership

93.5% of Apergy shares are held by institutional investors. Comparatively, 98.3% of ChampionX shares are held by institutional investors. 0.6% of Apergy shares are held by insiders. Comparatively, 0.6% of ChampionX shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Apergy has a beta of 3.56, meaning that its stock price is 256% more volatile than the S&P 500. Comparatively, ChampionX has a beta of 3.39, meaning that its stock price is 239% more volatile than the S&P 500.

Profitability

This table compares Apergy and ChampionX’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Apergy -57.05% 6.94% 3.41%
ChampionX -69.70% -1.51% -0.71%

Summary

Apergy beats ChampionX on 6 of the 10 factors compared between the two stocks.

About Apergy

Apergy Corporation provides engineered equipment and technologies that help companies drill for and produce oil and gas worldwide. The company operates through two segments, Production & Automation Technologies and Drilling Technologies. The Production & Automation Technologies segment offers artificial lift equipment and solutions, including rod pumping systems, electric submersible pump systems, progressive cavity pumps, and drive systems and plunger lifts; and automation and digital equipment, software, and industrial Internet of things solutions for downhole monitoring, wellsite productivity enhancement, and asset integrity management. It offers its products under the Harbison-Fischer, Norris, Alberta Oil Tool, Oil Lift Technology, PCS Ferguson, Pro-Rod, Upco, ESP, Norriseal-Wellmark, Quartzdyne, Spirit, Theta, Timberline, and Windrock brand names. The Drilling Technologies segment designs, manufactures, and markets polycrystalline diamond cutters and bearings for use in oil and gas drill bits under the US Synthetic brand. The company was formerly known as Wellsite Corporation and changed its name to Apergy Corporation in February 2018. Apergy Corporation was incorporated in 2017 and is headquartered in The Woodlands, Texas.

About ChampionX

As of June 3, 2020, ChampionX Holding Inc. was acquired by Apergy Corporation. Championx Holding Inc. engages in upstream business. The company offers technology-driven chemistry programs and value-enabling solutions and services to the global upstream oil and natural gas industry. It provides reservoir management, onshore and offshore production, midstream management, and water capabilities. Championx Holding Inc. was formerly known as Nalco Champion. The company was incorporated in 2019 and is based in Sugar Land, Texas.

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