Eco-Stim Energy Solutions (NASDAQ: ESES) and Archrock (NYSE:AROC) are both small-cap oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.

Profitability

This table compares Eco-Stim Energy Solutions and Archrock’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Eco-Stim Energy Solutions -134.72% -69.12% -28.55%
Archrock -8.57% -3.44% -0.98%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Eco-Stim Energy Solutions and Archrock, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eco-Stim Energy Solutions 0 1 2 0 2.67
Archrock 0 5 1 0 2.17

Eco-Stim Energy Solutions presently has a consensus target price of $2.10, indicating a potential upside of 51.08%. Archrock has a consensus target price of $13.35, indicating a potential upside of 28.37%. Given Eco-Stim Energy Solutions’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Eco-Stim Energy Solutions is more favorable than Archrock.

Dividends

Archrock pays an annual dividend of $0.48 per share and has a dividend yield of 4.6%. Eco-Stim Energy Solutions does not pay a dividend.

Valuation & Earnings

This table compares Eco-Stim Energy Solutions and Archrock’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Eco-Stim Energy Solutions $15.27 million 6.77 -$12.68 million ($1.34) -1.04
Archrock $777.50 million 0.95 $284.77 million N/A N/A

Archrock has higher revenue and earnings than Eco-Stim Energy Solutions.

Risk and Volatility

Eco-Stim Energy Solutions has a beta of 2.1, suggesting that its stock price is 110% more volatile than the S&P 500. Comparatively, Archrock has a beta of 3.49, suggesting that its stock price is 249% more volatile than the S&P 500.

Insider & Institutional Ownership

14.2% of Eco-Stim Energy Solutions shares are owned by institutional investors. Comparatively, 90.2% of Archrock shares are owned by institutional investors. 11.1% of Eco-Stim Energy Solutions shares are owned by insiders. Comparatively, 2.5% of Archrock shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Archrock beats Eco-Stim Energy Solutions on 8 of the 13 factors compared between the two stocks.

Eco-Stim Energy Solutions Company Profile

Eco-Stim Energy Solutions, Inc. is an oilfield services company. The Company provides well stimulation, coiled tubing and field management services to the upstream oil and gas industry. The Company focuses on the active shale and unconventional oil and natural gas basins outside the United States and it has commenced operations in Argentina. The Company operates well stimulation fleets, coiled tubing units and other downhole completion equipment, as well as provides sweet spot analysis in shale resource basins using geophysical predictive modeling combined with real-time feedback from down-hole diagnostic tools. The Company offers a pumping fleet, including well-stimulation pumps, nitrogen pumping units and cranes, in both trailer-mounted and skid-mounted configurations. It provides a range of pressure-pumping services, including work-over pumping, well injection and wireline pump downs.

Archrock Company Profile

Archrock, Inc. is a natural gas contract operations services company. The Company also provides natural gas compression services to customers in the oil and natural gas industry throughout the United States and supplies aftermarket services to customers that own compression equipment in the United States. The Company operates through two segments: contract operations and aftermarket services. The contract operations segment primarily provides natural gas compression services to meet specific customer requirements. The Company provides contract operations services, including the personnel, equipment, tools, materials and supplies to meet its customers’ natural gas compression needs. The aftermarket services segment provides a range of services to support the compression needs of customers, from parts sales and normal maintenance services to full operation of a customer’s owned assets.

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