Financial Review: Propetro (PUMP) and Quintana Energy Services (QES)

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Propetro (NYSE:PUMP) and Quintana Energy Services (NYSE:QES) are both small-cap oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.

Institutional and Insider Ownership

17.0% of Quintana Energy Services shares are held by institutional investors. 5.0% of Propetro shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Propetro and Quintana Energy Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Propetro 8.30% 27.91% 15.42%
Quintana Energy Services -2.25% -7.57% -4.37%

Analyst Ratings

This is a summary of current ratings and recommmendations for Propetro and Quintana Energy Services, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Propetro 0 0 0 0 N/A
Quintana Energy Services 0 3 4 0 2.57

Quintana Energy Services has a consensus target price of $10.75, suggesting a potential upside of 122.11%. Given Quintana Energy Services’ higher probable upside, analysts plainly believe Quintana Energy Services is more favorable than Propetro.

Valuation and Earnings

This table compares Propetro and Quintana Energy Services’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Propetro $981.86 million 1.56 $12.61 million $0.16 114.44
Quintana Energy Services $438.03 million 0.37 -$21.15 million ($0.05) -96.80

Propetro has higher revenue and earnings than Quintana Energy Services. Quintana Energy Services is trading at a lower price-to-earnings ratio than Propetro, indicating that it is currently the more affordable of the two stocks.

Summary

Propetro beats Quintana Energy Services on 9 of the 12 factors compared between the two stocks.

Propetro Company Profile

ProPetro Holding Corp., an oilfield services company, provides pressure pumping and other related services. The company offers hydraulic fracturing services; and a suite of well completion and production services, including cementing, acidizing, coiled tubing, flowback, surface air drilling, and drilling services. It serves the upstream oil and gas companies engaged in the exploration and production of North American unconventional oil and natural gas resources in the Permian Basin. The company's fleet consists of 18 hydraulic fracturing units with 780,000 hydraulic horsepower. ProPetro Holding Corp. was founded in 2005 and is headquartered in Midland, Texas.

Quintana Energy Services Company Profile

Quintana Energy Services Inc. provides oilfield services to onshore oil and natural gas exploration and production companies operating in conventional and unconventional plays in the United States. It operates through four segments: Directional Drilling Services, Pressure Pumping Services, Pressure Control Services, and Wireline Services. The Directional Drilling Services segment provides directional, horizontal, underbalanced, and measurement-while-drilling, as well as rental tool and pipe inspection services. The Pressure Pumping Services segment provides hydraulic fracturing stimulation services; cementing services, such as surface- and intermediate-casing and long-string cementing services; and a range of acid stimulation services comprising CO2 foamed acid stimulation services. As of December 31, 2017, this segment had a pressure pumping fleet of 245,925 hydraulic horsepower. The Pressure Control Services segment offers coiled tubing, rig-assisted snubbing, nitrogen, fluid pumping, and well control services for drilling, completion, and workover activities. As of December 31, 2017, this segment had a fleet of 23 coiled tubing, 36 rig-assisted snubbing, and 24 nitrogen pumping units. The Wireline Services segment offers pump-down services for setting plugs between frac stages, as well as the deployment of perforation equipment in connection with plug-and-perf operations; and other pump-down and cased-hole wireline services, including electro-mechanical pipe-cutting and punching. This segment also provides cased-hole production logging, injection profiling, stimulation performance evaluation, and water break-through identification services; and industrial logging services for cavern, storage, and injection wells, as well as operates Archer's POINT proprietary detection system and SPACE imaging and measurement platform in the land market. As of December 31, 2017, it owned 49 wireline units. The company was founded in 2017 and is headquartered in Houston, Texas.

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