Cameron International (NYSE: CAM) and RPC (NYSE:RES) are both energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.

Profitability

This table compares Cameron International and RPC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cameron International 7.17% 11.16% 5.17%
RPC -1.15% -1.74% -1.36%

Institutional & Insider Ownership

38.2% of RPC shares are held by institutional investors. 73.5% of RPC shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

RPC pays an annual dividend of $0.11 per share and has a dividend yield of 0.6%. Cameron International does not pay a dividend. RPC pays out -183.3% of its earnings in the form of a dividend. Cameron International has raised its dividend for 4 consecutive years.

Earnings and Valuation

This table compares Cameron International and RPC’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cameron International N/A N/A N/A N/A N/A
RPC $1.09 billion 3.77 $155.79 million ($0.06) -315.45

RPC has higher revenue and earnings than Cameron International.

Analyst Recommendations

This is a summary of current recommendations and price targets for Cameron International and RPC, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cameron International 0 0 0 0 N/A
RPC 0 8 9 0 2.53

RPC has a consensus price target of $23.16, indicating a potential upside of 22.33%. Given RPC’s higher possible upside, analysts clearly believe RPC is more favorable than Cameron International.

Summary

RPC beats Cameron International on 7 of the 11 factors compared between the two stocks.

About Cameron International

Cameron International Corporation (Cameron), incorporated on November 10, 1994, provides flow equipment products, systems and services to worldwide oil, gas and process industries. The Company operates through four business segments: Subsea, Surface, Drilling and Valves & Measurement (V&M). The Subsea segment delivers integrated solutions, products, systems and services to the subsea oil and gas market, including integrated subsea production systems. Cameron’s Surface segment designs and manufactures wellhead and Christmas tree systemsfor onshore and offshore topside applications – from conventional to high-pressure, high temperature systems, to specialized systems for dry completions and heavy oil. The Drilling segment is a global supplier of integrated drilling systems. The V&M segment’s businesses provide valves and measurement systems. Its businesses serve portions of the upstream, midstream and downstream markets.

About RPC

RPC, Inc. (RPC) is a holding company for several oilfield services companies. The Company provides a range of specialized oilfield services and equipment primarily to independent oil and gas companies engaged in the exploration, production and development of oil and gas properties throughout the United States, including the southwest, mid-continent, Gulf of Mexico, Rocky Mountain and Appalachian regions, and in selected international markets. The Company’s segments are Technical Services and Support Services. The Technical Services segment consists primarily of pressure pumping, downhole tools, coiled tubing, snubbing, nitrogen, well control, wireline and fishing. Its Support Services include all of the services that provide equipment for customers’ use on the well site without RPC personnel and services that are provided in support of customer operations off the well site, such as classroom and computer training, and other consulting services.

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