TETRA Technologies (NYSE: TTI) and Concho Resources (NYSE:CXO) are both oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.
Insider & Institutional Ownership
84.4% of TETRA Technologies shares are held by institutional investors. Comparatively, 97.2% of Concho Resources shares are held by institutional investors. 5.7% of TETRA Technologies shares are held by company insiders. Comparatively, 1.1% of Concho Resources shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This is a breakdown of current recommendations for TETRA Technologies and Concho Resources, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
TETRA Technologies presently has a consensus price target of $4.74, suggesting a potential upside of 8.04%. Concho Resources has a consensus price target of $169.29, suggesting a potential upside of 26.46%. Given Concho Resources’ stronger consensus rating and higher possible upside, analysts clearly believe Concho Resources is more favorable than TETRA Technologies.
Risk & Volatility
TETRA Technologies has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500. Comparatively, Concho Resources has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500.
Earnings and Valuation
This table compares TETRA Technologies and Concho Resources’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|TETRA Technologies||$820.38 million||0.67||-$39.04 million||($0.21)||-20.90|
|Concho Resources||$2.59 billion||7.72||$956.00 million||$2.09||64.05|
Concho Resources has higher revenue and earnings than TETRA Technologies. TETRA Technologies is trading at a lower price-to-earnings ratio than Concho Resources, indicating that it is currently the more affordable of the two stocks.
This table compares TETRA Technologies and Concho Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Concho Resources beats TETRA Technologies on 13 of the 14 factors compared between the two stocks.
About TETRA Technologies
TETRA Technologies, Inc., together with its subsidiaries, operates as a diversified oil and gas services company. The company's Fluids division manufactures and markets clear brine fluids, additives, and associated products and services to the oil and gas industry for use in well drilling, completion, and workover operations in the United States, as well as in Latin America, Europe, Asia, the Middle East, and Africa. This division also markets liquid and dry calcium chloride products; and provides water management services for onshore oil and gas operators. Its Production Testing division provides frac flowback, production well testing, offshore rig cooling, and other associated services in oil and gas producing regions in the United States, Mexico, and Canada, as well as in various basins in South America, Africa, Europe, the Middle East, and Australia. The company's Compression division engages in the fabrication and sale of standard compressor packages, custom-designed compressor packages, and oilfield pump systems; and the provision of compressor package reconfiguration and maintenance services, and compressor package parts and components manufactured by third-party suppliers. This division provides compression services and equipment for natural gas and oil exploration and production, midstream, transmission, and storage companies operating throughout in onshore producing regions of the United States, as well as in Mexico, Canada, and Argentina. TETRA Technologies, Inc. was founded in 1981 and is headquartered in The Woodlands, Texas.
About Concho Resources
Concho Resources Inc., an independent oil and natural gas company, engages in the acquisition, development, and exploration of oil and natural gas properties in the United States. The company's principal operating areas are located in the Permian Basin of southeast New Mexico and west Texas. As of December 31, 2017, its total estimated proved reserves were 840 million barrels of oil equivalent. Concho Resources Inc. was founded in 2006 and is headquartered in Midland, Texas.
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