Critical Review: CIRCOR International (CIR) and Tesco Corporation (NASDAQ:TESO)
CIRCOR International (NYSE: CIR) and Tesco Corporation (NASDAQ:TESO) are both small-cap industrial products companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, analyst recommendations, valuation and profitability.
This is a breakdown of recent recommendations for CIRCOR International and Tesco Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
CIRCOR International currently has a consensus target price of $65.00, indicating a potential upside of 36.93%. Tesco Corporation has a consensus target price of $6.33, indicating a potential upside of 43.94%. Given Tesco Corporation’s higher possible upside, analysts clearly believe Tesco Corporation is more favorable than CIRCOR International.
Institutional & Insider Ownership
98.0% of Tesco Corporation shares are held by institutional investors. 2.7% of CIRCOR International shares are held by company insiders. Comparatively, 1.7% of Tesco Corporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Volatility & Risk
CIRCOR International has a beta of 1.66, meaning that its share price is 66% more volatile than the S&P 500. Comparatively, Tesco Corporation has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500.
Earnings & Valuation
This table compares CIRCOR International and Tesco Corporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|CIRCOR International||$589.51 million||1.33||$56.70 million||$0.98||48.44|
|Tesco Corporation||$142.59 million||1.44||-$34.72 million||($1.46)||-3.01|
CIRCOR International has higher revenue and earnings than Tesco Corporation. Tesco Corporation is trading at a lower price-to-earnings ratio than CIRCOR International, indicating that it is currently the more affordable of the two stocks.
CIRCOR International pays an annual dividend of $0.15 per share and has a dividend yield of 0.3%. Tesco Corporation does not pay a dividend. CIRCOR International pays out 15.3% of its earnings in the form of a dividend.
This table compares CIRCOR International and Tesco Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
CIRCOR International beats Tesco Corporation on 11 of the 15 factors compared between the two stocks.
About CIRCOR International
CIRCOR International, Inc. (CIRCOR) designs, manufactures and markets engineered products and sub-systems for markets, including oil and gas, aerospace, power and process, and industrial solutions. The Company operates through two segments: CIRCOR Energy (Energy segment (Energy)) and CIRCOR Advanced Flow Solutions (Advanced Flow Solutions segment (AFS)). Energy provides engineered integrated flow control solutions, valves and services primarily in the oil and gas end market. AFS is a flow control technology platform. Energy provides its flow control solutions and services through the brands, including Circle Seal Controls, DeltaValve, Contromatics, Dopak Sampling and others. AFS manufactures and markets control valves, automatic recirculation valves, regulators, fluid controls, actuation systems, landing gear components, pneumatic controls, electro-mechanical controls, and other flow control products and systems. As of December 31, 2016, it operated 19 manufacturing facilities.
About Tesco Corporation
Tesco Corporation is a provider of technology-based solutions for drilling, servicing and completion of wells for the upstream energy industry. The Company’s operations consist of top drives and automated pipe handling equipment sales and rentals; aftermarket sales and services, and tubular services, including related products and accessories sales. Its segments include Products, Tubular Services, Research and Engineering, and Corporate and Other. The Products segment includes top drives and automated pipe handling equipment sales, rentals and aftermarket sales and services. The Tubular Services segment includes onshore and offshore tubular services and sales of related products and accessories. The Research and Engineering segment includes internal research, engineering, and development activities related to its products and tubular services. The Corporate and Other segment includes executive management and various global support and compliance functions.
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