Analyzing Deep Down (DPDW) and Basic Energy Services (BAS)
Deep Down (OTCMKTS: DPDW) and Basic Energy Services (NYSE:BAS) are both small-cap oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, earnings, valuation, analyst recommendations, institutional ownership and profitability.
Institutional & Insider Ownership
6.0% of Deep Down shares are held by institutional investors. 11.1% of Basic Energy Services shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares Deep Down and Basic Energy Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Basic Energy Services||-44.40%||-67.31%||-20.33%|
This is a summary of recent recommendations for Deep Down and Basic Energy Services, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Basic Energy Services||0||5||4||0||2.44|
Basic Energy Services has a consensus price target of $24.63, suggesting a potential upside of 59.49%. Given Basic Energy Services’ higher probable upside, analysts plainly believe Basic Energy Services is more favorable than Deep Down.
Valuation and Earnings
This table compares Deep Down and Basic Energy Services’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Deep Down||$26.05 million||0.54||$3.07 million||$0.10||9.20|
|Basic Energy Services||$692.45 million||0.55||-$25.85 million||($1,205.99)||-0.01|
Deep Down has higher revenue, but lower earnings than Basic Energy Services. Basic Energy Services is trading at a lower price-to-earnings ratio than Deep Down, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Deep Down has a beta of -0.13, indicating that its stock price is 113% less volatile than the S&P 500. Comparatively, Basic Energy Services has a beta of 2.79, indicating that its stock price is 179% more volatile than the S&P 500.
Deep Down Company Profile
Deep Down, Inc. is engaged in the oilfield services industry. The Company operates through Deep Down Delaware segment. The Company is a provider of specialized services to the offshore energy industry to support deep water and ultra-deep water exploration, development and production of oil and gas, and other maritime operations. It also produces custom engineered products that assist it in fulfilling service objectives for specific projects on a contractual basis. The Company designs and manufactures deep water and ultra-deep water, surface and offshore equipment solutions, which are used by independent and foreign national oil and gas companies in offshore areas across the world. The Company provides engineering and management services, including the design, installation and retrieval of subsea equipment and systems, connection and termination operations, well-commissioning services, as well as construction support and remotely operated vehicle (ROV) operations support.
Basic Energy Services Company Profile
Basic Energy Services, Inc. provides a range of well site services in the United States to oil and natural gas drilling and producing companies, including completion and remedial services, fluid services, well servicing and contract drilling. The Company operates through the segment, which include Completion and Remedial Services, Fluid Services, Well Servicing and Contract Drilling. The Company’s operations are managed regionally and are concentrated in the United States onshore oil and natural gas producing regions located in Texas, New Mexico, Oklahoma, Arkansas, Kansas, Louisiana, Wyoming, North Dakota, Colorado, Utah, Montana, West Virginia, California, Ohio and Pennsylvania. Its operations are focused on liquids-rich basins, as well as natural gas-focused shale plays characterized by prolific reserves. It has a presence in the Permian Basin and the Bakken, Eagle Ford, Haynesville and Marcellus shales.
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