Select Energy Services (NYSE:WTTR) 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 earnings, analyst recommendations, valuation, dividends, risk, profitability and institutional ownership.
Institutional & Insider Ownership
58.7% of Select Energy Services shares are held by institutional investors. Comparatively, 46.7% of US Well Services shares are held by institutional investors. 9.2% of Select Energy Services shares are held by company insiders. Comparatively, 10.9% of US Well Services shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares Select Energy Services and US Well Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Select Energy Services||1.82%||6.11%||4.84%|
|US Well Services||N/A||-51.45%||-13.66%|
This is a breakdown of recent ratings for Select Energy Services and US Well Services, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Select Energy Services||0||1||8||0||2.89|
|US Well Services||0||0||1||0||3.00|
Select Energy Services presently has a consensus target price of $16.11, indicating a potential upside of 28.27%. US Well Services has a consensus target price of $7.90, indicating a potential upside of 3.54%. Given Select Energy Services’ higher possible upside, research analysts clearly believe Select Energy Services is more favorable than US Well Services.
Earnings and Valuation
This table compares Select Energy Services and US Well Services’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Select Energy Services||$1.53 billion||0.86||$36.51 million||$0.86||14.60|
|US Well Services||$648.85 million||0.74||-$65.90 million||($1.33)||-5.74|
Select Energy Services has higher revenue and earnings than US Well Services. US Well Services is trading at a lower price-to-earnings ratio than Select Energy Services, indicating that it is currently the more affordable of the two stocks.
Select Energy Services beats US Well Services on 11 of the 13 factors compared between the two stocks.
About Select Energy Services
Select Energy Services, Inc., an oilfield services company, provides water management and chemical solutions to the onshore oil and natural gas industry in the United States and Western Canada. The company operates through three segments: Water Solutions, Oilfield Chemicals, and Wellsite Services. The Water Solutions segment provides water-related services, including the sourcing of water; the transfer of the water to the wellsite through permanent pipeline infrastructure and temporary pipe; the containment of fluids off-and on-location; measuring and monitoring of water; the filtering and treatment of fluids, well testing, and handling of flowback and produced formation water; and the transportation and recycling or disposal of drilling, completion, and production fluids. This segment serves integrated oil companies, and independent oil and natural gas producers. The Oilfield Chemicals segment develops, manufactures, and provides various chemicals, such as polymer slurries, crosslinkers, friction reducers, surfactants, buffers, breakers, and other chemical technologies for use in hydraulic fracturing, stimulation, cementing, and well completions to pressure pumping service companies. It also offers production chemical solutions for underperforming wells in order to enhance well performance and reduce production costs; and ancillary oilfield services comprising corrosion and scale monitoring, chemical inventory management, well failure analysis, and lab services. The Wellsite Services segment provides various services comprising workforce accommodation and surface equipment rental, crane and logistics, wellsite and pipeline construction, field and well, and sand-hauling and fluid-logistics services. It also offers ater transfer, fluid hauling, containment, and other rental services. This segment serves oil and natural gas operators. Select Energy Services, Inc. was founded in 2016 and is headquartered in Houston, Texas.
About US Well Services
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.
Receive News & Ratings for Select Energy Services Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Select Energy Services and related companies with MarketBeat.com's FREE daily email newsletter.