Basic Energy Services (NYSE: BAS) and Superior Drilling Products (NASDAQ:SDPI) are both small-cap oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, risk and valuation.

Profitability

This table compares Basic Energy Services and Superior Drilling Products’ 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%
Superior Drilling Products N/A N/A N/A

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Basic Energy Services and Superior Drilling Products, 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
Superior Drilling Products 0 0 3 0 3.00

Basic Energy Services presently has a consensus price target of $24.63, suggesting a potential upside of 62.33%. Superior Drilling Products has a consensus price target of $2.00, suggesting a potential upside of 163.16%. Given Superior Drilling Products’ stronger consensus rating and higher possible upside, analysts plainly believe Superior Drilling Products is more favorable than Basic Energy Services.

Earnings & Valuation

This table compares Basic Energy Services and Superior Drilling Products’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Basic Energy Services $692.45 million 0.54 -$25.85 million ($1,205.99) -0.01
Superior Drilling Products $12.01 million 0.95 $1.88 million N/A N/A

Superior Drilling Products has higher revenue, but lower earnings than Basic Energy Services.

Summary

Superior Drilling Products beats Basic Energy Services on 7 of the 9 factors compared between the two stocks.

About Basic Energy Services

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.

About Superior Drilling Products

Superior Drilling Products, Inc., a drilling and completion tool technology company, innovates, designs, engineers, manufactures, sells, rents, and repairs drilling and completion tools in the United States and internationally. It is involved in the design and manufacture of new drill bit and horizontal drill string enhancement tools for the oil, natural gas, and mining services industries; and the refurbishment of polycrystalline diamond compact drill bits. The company’s horizontal drilling tools include Drill N Ream, a dual-section reaming tool; Strider, a drill string oscillation system; V-Stream, an advanced conditioning system; and Dedicated Reamer Stinger that is used to enhance dedicated reamer operations. It serves companies operating in the exploration and production of oil and natural gas. The company was formerly known as SD Company, Inc. and changed its name to Superior Drilling Products, Inc. in May 2014. Superior Drilling Products, Inc. was founded in 1999 and is headquartered in Vernal, Utah.

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