Emerge Energy Services (NYSE: SLCA) and U.S. Silica (NYSE:SLCA) are both small-cap oils/energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, dividends, profitability, valuation, institutional ownership and earnings.
Valuation & Earnings
This table compares Emerge Energy Services and U.S. Silica’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Emerge Energy Services||$364.30 million||0.41||-$6.83 million||($0.12)||-40.17|
|U.S. Silica||$1.24 billion||1.21||$145.20 million||$1.50||12.95|
U.S. Silica has higher revenue and earnings than Emerge Energy Services. Emerge Energy Services is trading at a lower price-to-earnings ratio than U.S. Silica, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Emerge Energy Services has a beta of 1.96, indicating that its stock price is 96% more volatile than the S&P 500. Comparatively, U.S. Silica has a beta of 2.15, indicating that its stock price is 115% more volatile than the S&P 500.
Institutional & Insider Ownership
12.0% of Emerge Energy Services shares are held by institutional investors. Comparatively, 99.2% of U.S. Silica shares are held by institutional investors. 1.4% of U.S. Silica shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
U.S. Silica pays an annual dividend of $0.25 per share and has a dividend yield of 1.3%. Emerge Energy Services does not pay a dividend. U.S. Silica pays out 16.7% of its earnings in the form of a dividend.
This table compares Emerge Energy Services and U.S. Silica’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Emerge Energy Services||5.19%||40.78%||6.99%|
This is a summary of current ratings and target prices for Emerge Energy Services and U.S. Silica, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Emerge Energy Services||0||5||1||0||2.17|
Emerge Energy Services currently has a consensus target price of $8.33, suggesting a potential upside of 72.89%. U.S. Silica has a consensus target price of $36.71, suggesting a potential upside of 88.91%. Given U.S. Silica’s stronger consensus rating and higher probable upside, analysts clearly believe U.S. Silica is more favorable than Emerge Energy Services.
U.S. Silica beats Emerge Energy Services on 14 of the 16 factors compared between the two stocks.
Emerge Energy Services Company Profile
Emerge Energy Services LP, through its subsidiary, Superior Silica Sands LLC, operates an energy services company in the United States. It engages in mining, producing, and distributing silica sand, which is a primary input for the hydraulic fracturing of oil and natural gas wells. The company serves oilfield services companies, and exploration and production companies that are engaged in hydraulic fracturing. Emerge Energy Services GP, LLC operates as the general partner of the company. Emerge Energy Services LP was founded in 2012 and is headquartered in Fort Worth, Texas.
U.S. Silica Company Profile
U.S. Silica Holdings, Inc. produces and sells commercial silica in the United States. The company operates through two segments, Oil & Gas Proppants and Industrial & Specialty Products. It offers whole grain commercial silica products to be used as fracturing sand in connection with oil and natural gas recovery; and resin coated proppants, as well as sells its whole grain silica products in various size distributions, grain shapes, and chemical purity levels for manufacturing glass products. The company also provides ground commercial silica products for use in plastics, rubber, polishes, cleansers, paints, glazes, textile fiberglass, and precision castings; and fine ground silica for use in premium paints, specialty coatings, sealants, silicone rubber, and epoxies. In addition, it offers other industrial mineral products, such as aplite, a mineral used to produce container glass and insulation fiberglass; adsorbent made from a mixture of silica and magnesium for preparative and analytical chromatography applications; and White Armor, a product line of cool roof granules used in industrial roofing applications. U.S. Silica Holdings, Inc. serves oilfield services companies, and exploration and production companies that are engaged in hydraulic fracturing; and industrial and specialty products end markets. The company was formerly known as GGC USS Holdings, Inc. U.S. Silica Holdings, Inc. was incorporated in 2008 and is headquartered in Frederick, Maryland.
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