Matrix Service (NASDAQ: MTRX) and Superior Energy Services (NYSE:SPN) are both small-cap oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, profitability, risk, analyst recommendations and dividends.
Earnings and Valuation
This table compares Matrix Service and Superior Energy Services’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Matrix Service||$1.20 billion||0.39||-$180,000.00||($0.22)||-79.09|
|Superior Energy Services||$1.45 billion||0.90||-$886.89 million||($2.81)||-3.02|
Matrix Service has higher earnings, but lower revenue than Superior Energy Services. Matrix Service is trading at a lower price-to-earnings ratio than Superior Energy Services, indicating that it is currently the more affordable of the two stocks.
This table compares Matrix Service and Superior Energy Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Superior Energy Services||-24.59%||-26.18%||-9.41%|
This is a breakdown of recent recommendations for Matrix Service and Superior Energy Services, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Superior Energy Services||0||12||7||0||2.37|
Superior Energy Services has a consensus price target of $13.00, indicating a potential upside of 52.94%. Given Superior Energy Services’ stronger consensus rating and higher possible upside, analysts clearly believe Superior Energy Services is more favorable than Matrix Service.
Risk & Volatility
Matrix Service has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500. Comparatively, Superior Energy Services has a beta of 2.16, meaning that its share price is 116% more volatile than the S&P 500.
Insider & Institutional Ownership
88.3% of Matrix Service shares are held by institutional investors. 2.5% of Matrix Service shares are held by company insiders. Comparatively, 2.9% of Superior Energy Services shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Superior Energy Services beats Matrix Service on 7 of the 13 factors compared between the two stocks.
About Matrix Service
Matrix Service Company provides engineering, fabrication, infrastructure, construction and maintenance services primarily to the oil, gas, power, petrochemical, industrial, mining and minerals markets. The Company’s segments include Electrical Infrastructure, Oil Gas & Chemical, Storage Solutions and Industrial. The Electrical Infrastructure segment primarily includes construction and maintenance services to a range of power generation facilities, such as combined cycle plants, natural gas fired power stations and renewable energy installations. The Oil Gas & Chemical segment includes turnaround activities, plant maintenance services and construction in the downstream petroleum industry. The Storage Solutions segment includes new construction of crude and refined products aboveground storage tanks (ASTs), as well as planned and emergency maintenance services. The Industrial segment includes construction and maintenance work in the iron and steel and mining and minerals industries.
About Superior Energy Services
Superior Energy Services, Inc. provides a range of services and products to the energy industry related to the exploration, development and production of oil and natural gas. The Company’s segments include Drilling Products and Services, which rents and sells bottom hole assemblies, drill pipe, tubulars and specialized equipment for use with onshore and offshore oil and gas well drilling, production and workover activities; Onshore Completion and Workover Services, which provides pressure pumping services used to complete and stimulate production in new oil and gas wells, fluid handling services and well servicing rigs that provide a range of well completion and maintenance services; Production Services, which provides intervention services, such as coiled tubing, cased hole and mechanical wireline, hydraulic workover and snubbing, and remedial pumping services, and Technical Solutions, which provides services requiring specialized engineering, manufacturing or project planning.
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