Natural Gas Services Group (NGS) vs. Its Peers Critical Comparison

Natural Gas Services Group (NYSE: NGS) is one of 31 public companies in the “Oil & gas field services, not elsewhere classified” industry, but how does it compare to its peers? We will compare Natural Gas Services Group to similar companies based on the strength of its analyst recommendations, profitability, dividends, risk, valuation, institutional ownership and earnings.

Insider & Institutional Ownership

90.9% of Natural Gas Services Group shares are held by institutional investors. Comparatively, 58.8% of shares of all “Oil & gas field services, not elsewhere classified” companies are held by institutional investors. 6.9% of Natural Gas Services Group shares are held by company insiders. Comparatively, 17.0% of shares of all “Oil & gas field services, not elsewhere classified” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.



Volatility & Risk

Natural Gas Services Group has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500. Comparatively, Natural Gas Services Group’s peers have a beta of 1.31, meaning that their average stock price is 31% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Natural Gas Services Group and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Natural Gas Services Group 0 0 3 0 3.00
Natural Gas Services Group Competitors 236 1135 1721 76 2.52

Natural Gas Services Group presently has a consensus target price of $28.00, suggesting a potential upside of 10.24%. As a group, “Oil & gas field services, not elsewhere classified” companies have a potential upside of 21.38%. Given Natural Gas Services Group’s peers higher probable upside, analysts clearly believe Natural Gas Services Group has less favorable growth aspects than its peers.

Valuation & Earnings

This table compares Natural Gas Services Group and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Natural Gas Services Group $67.69 million $19.85 million 230.91
Natural Gas Services Group Competitors $3.85 billion $113.38 million -5.71

Natural Gas Services Group’s peers have higher revenue and earnings than Natural Gas Services Group. Natural Gas Services Group is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Natural Gas Services Group and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Natural Gas Services Group 29.31% 0.62% 0.51%
Natural Gas Services Group Competitors -4.61% -0.23% -1.17%

Summary

Natural Gas Services Group beats its peers on 7 of the 13 factors compared.

About Natural Gas Services Group

Natural Gas Services Group, Inc. is a provider of small to medium horsepower compression equipment to the natural gas industry. The Company focuses primarily on the non-conventional natural gas and oil production business in the United States, such as coal bed methane, gas shale, tight gas and oil shales. The Company manufactures, fabricates and rents natural gases compressors that enhance the production of natural gas wells and provides maintenance services for its natural gas compressors. In addition, it sells custom fabricated natural gas compressors to meet customer specifications dictated by well pressures, production characteristics and particular applications. It also manufactures and sells flare systems for oil and gas plant and production facilities. The Company’s operating units include Gas Compressor Rental, Engineered Equipment Sales, Service and Maintenance, and Corporate.

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