CGG (NYSE: CGG) and Keane Group (NASDAQ:FRAC) are both small-cap oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, valuation, earnings and dividends.

Earnings & Valuation

This table compares CGG and Keane Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CGG $1.19 billion 0.12 $366.90 million ($30.71) -0.20
Keane Group $831.08 million 1.90 $49.20 million N/A N/A

CGG has higher revenue and earnings than Keane Group.

Insider & Institutional Ownership

0.3% of CGG shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares CGG and Keane Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CGG -57.05% -62.43% -14.28%
Keane Group -3.68% -14.38% -7.52%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for CGG and Keane Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CGG 2 0 0 0 1.00
Keane Group 0 8 9 0 2.53

Keane Group has a consensus target price of $20.82, indicating a potential upside of 47.15%. Given Keane Group’s stronger consensus rating and higher possible upside, analysts clearly believe Keane Group is more favorable than CGG.

Summary

Keane Group beats CGG on 7 of the 10 factors compared between the two stocks.

About CGG

CGG SA (CGG) is a manufacturer of geophysical equipment. The Company provides marine, land and airborne data acquisition services, as well as a range of other geoscience services, including data imaging, geoscience and petroleum engineering consulting services, and collecting, developing and licensing geological data. Its segments include Contractual Data Acquisition; Geology, Geophysics & Reservoir (GGR); Equipment, and Non-Operated Resources. The Contractual Data Acquisition includes marine, and land and multi-physics. Its GGR segment includes the Multi-client business line and the Subsurface Imaging and Reservoir business lines (processing and imaging of geophysical data, reservoir characterization, geophysical consulting and software services, geological data library and data management solutions). The Equipment segment consists of its manufacturing and sales activities for seismic equipment. It operates through Saturno, a multi-client survey over Santos Basin Offshore Brazil.

About Keane Group

Keane Group, Inc. is provider of integrated well completion services in the United States, with a focus on demanding completion solutions. The Company’s segments include Completion Services, which comprises hydraulic fracturing and wireline divisions, and Other Services, which consists of coiled tubing, cementing and drilling divisions. It provides hydraulic fracturing and wireline services pursuant to contractual arrangements, such as term contracts and pricing agreements, or on a spot market basis. It provides certain complementary services such as coiled tubing, cementing and drilling pursuant to contractual arrangements, such as term contracts on a spot basis. Its primary services include horizontal and vertical fracturing, wireline perforation and logging and engineered solutions, as well as other value-added service offerings. As of July 3, 2017, the Company had approximately 1.2 million hydraulic horsepower spread across 23 hydraulic fracturing fleets and 31 wireline trucks.

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