NexTier Oilfield Solutions (NEX) and Its Competitors Financial Analysis

NexTier Oilfield Solutions (NYSE: NEX) is one of 36 publicly-traded companies in the “Oil & gas field services, not elsewhere classified” industry, but how does it contrast to its peers? We will compare NexTier Oilfield Solutions to similar companies based on the strength of its profitability, dividends, risk, valuation, earnings, institutional ownership and analyst recommendations.

Profitability

This table compares NexTier Oilfield Solutions and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NexTier Oilfield Solutions -0.96% 2.73% 1.22%
NexTier Oilfield Solutions Competitors -7.97% -78.64% 0.21%

Insider & Institutional Ownership

88.4% of NexTier Oilfield Solutions shares are held by institutional investors. Comparatively, 62.7% of shares of all “Oil & gas field services, not elsewhere classified” companies are held by institutional investors. 0.5% of NexTier Oilfield Solutions shares are held by company insiders. Comparatively, 9.7% 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 company is poised for long-term growth.

Volatility & Risk

NexTier Oilfield Solutions has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500. Comparatively, NexTier Oilfield Solutions’ peers have a beta of 1.94, suggesting that their average stock price is 94% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for NexTier Oilfield Solutions and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NexTier Oilfield Solutions 0 1 4 0 2.80
NexTier Oilfield Solutions Competitors 481 1838 2310 99 2.43

NexTier Oilfield Solutions currently has a consensus price target of $8.26, suggesting a potential upside of 50.18%. As a group, “Oil & gas field services, not elsewhere classified” companies have a potential upside of 57.87%. Given NexTier Oilfield Solutions’ peers higher probable upside, analysts clearly believe NexTier Oilfield Solutions has less favorable growth aspects than its peers.

Earnings and Valuation

This table compares NexTier Oilfield Solutions and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
NexTier Oilfield Solutions $2.14 billion $59.33 million 5.98
NexTier Oilfield Solutions Competitors $3.79 billion $274.39 million 8.84

NexTier Oilfield Solutions’ peers have higher revenue and earnings than NexTier Oilfield Solutions. NexTier Oilfield Solutions is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

NexTier Oilfield Solutions peers beat NexTier Oilfield Solutions on 7 of the 13 factors compared.

NexTier Oilfield Solutions Company Profile

NexTier Oilfield Solutions Inc. provides integrated well completion services primarily in the United States. Its principal service offerings include horizontal and vertical fracturing, wireline perforation and logging, and engineered solutions. The company also provides cementing and drilling services; and engineering software and technical guidance for remedial cementing applications and acidizing. Its customers primarily include integrated and large independent oil and natural gas exploration and production companies. The company has 29 hydraulic fracturing fleets, 34 wireline trucks, 24 cementing pumps, and other ancillary assets located in the Permian Basin, the Marcellus Shale/Utica Shale, the Eagle Ford Formation, the Bakken Formation, and other active oil and gas basins. NexTier Oilfield Solutions Inc. was founded in 1973 and is headquartered in Houston, Texas. NexTier Oilfield Solutions Inc. is a subsidiary of Keane Investor Holdings LLC.

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