Contrasting Cypress Energy Partners (CELP) and RPC (RES)

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

Institutional & Insider Ownership

1.4% of Cypress Energy Partners shares are owned by institutional investors. Comparatively, 35.3% of RPC shares are owned by institutional investors. 73.5% of RPC shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.



Valuation & Earnings

This table compares Cypress Energy Partners and RPC’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cypress Energy Partners $286.34 million 0.27 -$810,000.00 $0.50 13.06
RPC $1.60 billion 2.47 $162.51 million $0.66 27.53

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

Dividends

Cypress Energy Partners pays an annual dividend of $0.84 per share and has a dividend yield of 12.9%. RPC pays an annual dividend of $0.40 per share and has a dividend yield of 2.2%. Cypress Energy Partners pays out 168.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. RPC pays out 60.6% of its earnings in the form of a dividend. RPC has raised its dividend for 5 consecutive years.

Analyst Ratings

This is a summary of current recommendations for Cypress Energy Partners and RPC, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cypress Energy Partners 0 2 0 0 2.00
RPC 1 13 4 0 2.17

Cypress Energy Partners currently has a consensus target price of $6.50, indicating a potential downside of 0.46%. RPC has a consensus target price of $23.16, indicating a potential upside of 27.44%. Given RPC’s stronger consensus rating and higher possible upside, analysts clearly believe RPC is more favorable than Cypress Energy Partners.

Profitability

This table compares Cypress Energy Partners and RPC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cypress Energy Partners 0.81% 46.27% 2.86%
RPC 10.19% 16.90% 13.10%

Risk and Volatility

Cypress Energy Partners has a beta of 1.6, suggesting that its stock price is 60% more volatile than the S&P 500. Comparatively, RPC has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500.

Summary

RPC beats Cypress Energy Partners on 14 of the 17 factors compared between the two stocks.

Cypress Energy Partners Company Profile

Cypress Energy Partners, L.P. provides pipeline inspection and integrity, and environmental services in North America. It operates in three segments: Pipeline Inspection Services (PIS), Integrity Services (IS), and Water and Environmental Services (W&ES). The PIS segment offers independent inspection services for various facilities and equipment, such as transmission pipelines, oil and natural gas gathering systems, pump and compressor stations, storage facilities and terminals, and gas distribution systems. It offers project coordination, staking, pig tracking, maintenance and construction inspection, ultrasonic nondestructive examination, and related data management services. The IS segment provides hydrostatic testing and related services, including filling, pressure testing, and dewatering to natural gas, petroleum, and pipeline construction companies. It performs various integrity services on newly constructed and existing oil and natural gas pipelines. The W&ES segment provides saltwater disposal (SWD) services; and owns and operates eight commercial SWD facilities in the Bakken Shale region of the Williston Basin in North Dakota, as well as one SWD facilities in the Permian Basin in Texas. This segment also provides flowback water management services by disposing flowback water produced from hydraulic fracturing operations during the completion of oil and natural gas wells; offers water management services by disposing naturally occurring water that is extracted during the oil and natural gas production process; separates residual oil from the saltwater stream and sells it to third-parties; and manages existing SWD facilities. It serves oil and natural gas producers, pipeline owners and operators, public utility or local distribution companies, trucking companies, and third-party purchasers of residual oil. The company was founded in 2012 and is headquartered in Tulsa, Oklahoma. Cypress Energy Partners, L.P. is a subsidiary of Cypress Energy Holdings, LLC.

RPC Company Profile

RPC, Inc. (RPC) is a holding company for several oilfield services companies. The Company provides a range of specialized oilfield services and equipment primarily to independent oil and gas companies engaged in the exploration, production and development of oil and gas properties throughout the United States, including the southwest, mid-continent, Gulf of Mexico, Rocky Mountain and Appalachian regions, and in selected international markets. The Company’s segments are Technical Services and Support Services. The Technical Services segment consists primarily of pressure pumping, downhole tools, coiled tubing, snubbing, nitrogen, well control, wireline and fishing. Its Support Services include all of the services that provide equipment for customers’ use on the well site without RPC personnel and services that are provided in support of customer operations off the well site, such as classroom and computer training, and other consulting services.

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