Matrix Service (NASDAQ: MTRX) and Geospace Technologies (NASDAQ:GEOS) are both small-cap oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, institutional ownership and profitability.

Earnings and Valuation

This table compares Matrix Service and Geospace Technologies’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Matrix Service $1.27 billion 0.22 $32.57 million $0.37 28.24
Geospace Technologies $66.35 million 3.14 -$32.47 million ($3.80) -4.08

Matrix Service has higher revenue and earnings than Geospace Technologies. Geospace Technologies is trading at a lower price-to-earnings ratio than Matrix Service, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Matrix Service and Geospace Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Matrix Service 0.78% 3.07% 1.69%
Geospace Technologies -101.28% -26.34% -25.37%

Volatility and Risk

Matrix Service has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500. Comparatively, Geospace Technologies has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Matrix Service and Geospace Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Matrix Service 0 2 1 0 2.33
Geospace Technologies 0 1 0 0 2.00

Matrix Service currently has a consensus price target of $20.00, suggesting a potential upside of 91.39%. Given Matrix Service’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Matrix Service is more favorable than Geospace Technologies.

Insider and Institutional Ownership

85.0% of Matrix Service shares are held by institutional investors. Comparatively, 81.7% of Geospace Technologies shares are held by institutional investors. 2.5% of Matrix Service shares are held by company insiders. Comparatively, 3.5% of Geospace Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Matrix Service beats Geospace Technologies on 10 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 Geospace Technologies

Geospace Technologies Corporation designs and manufactures instruments and equipment used by the oil and gas industry to acquire seismic data in order to locate, characterize and monitor hydrocarbon producing reservoirs. The Company also designs and manufactures non-seismic products, including industrial products, offshore cables and imaging equipment. The Company operates through two segments: Seismic and Non-Seismic. The Company’s Seismic product segments include traditional exploration products, wireless exploration products and reservoir products. Its seismic product lines consist of land and marine nodal data acquisition systems, permanent land and seabed reservoir monitoring products and services, geophones and geophone strings, hydrophones, leader wire, connectors, telemetry cables, marine streamer retrieval and steering devices and various other products. The Company’s Non-Seismic product segments include imaging and industrial products.

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