IRIS International (NASDAQ: IRIS) and Forum Energy Technologies (NYSE:FET) are both small-cap oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, analyst recommendations, dividends, earnings and risk.

Profitability

This table compares IRIS International and Forum Energy Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
IRIS International -61.58% -36.70% -29.47%
Forum Energy Technologies -18.89% -4.55% -3.03%

Valuation and Earnings

This table compares IRIS International and Forum Energy Technologies’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
IRIS International $47.70 million 0.82 -$24.80 million ($2.49) -1.30
Forum Energy Technologies $657.68 million 2.05 -$22.64 million ($1.31) -10.73

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

Risk and Volatility

IRIS International has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500. Comparatively, Forum Energy Technologies has a beta of 1.64, suggesting that its stock price is 64% more volatile than the S&P 500.

Institutional & Insider Ownership

68.9% of IRIS International shares are held by institutional investors. 9.7% of IRIS International shares are held by insiders. Comparatively, 32.8% of Forum Energy Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for IRIS International and Forum Energy Technologies, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IRIS International 0 0 0 0 N/A
Forum Energy Technologies 0 11 5 0 2.31

Forum Energy Technologies has a consensus price target of $19.67, indicating a potential upside of 39.98%. Given Forum Energy Technologies’ higher probable upside, analysts clearly believe Forum Energy Technologies is more favorable than IRIS International.

Summary

Forum Energy Technologies beats IRIS International on 11 of the 12 factors compared between the two stocks.

IRIS International Company Profile

Mitcham Industries, Inc. is a provider of equipment to the geophysical, oceanographic and hydrographic industries. The Company operates through two segments. The Equipment Leasing segment is primarily engaged in the leasing of seismic equipment to companies in the oil and gas industry across the world. The Equipment Manufacturing and Sales segment is engaged in the design, production and sale of marine seismic equipment, and oceanographic and hydrographic equipment. Its leasing business includes Mitcham Canada ULC, Seismic Asia Pacific Pty Ltd., Mitcham Seismic Eurasia LLC, Mitcham Europe Ltd. and Mitcham Marine Leasing Pte. Ltd. The Equipment Manufacturing and Sales Segment includes its Seamap International Holdings Pte, Ltd. (Seamap) business and Klein Marine Systems, Inc. (Klein). Seamap designs, manufactures and sells a range of products for the seismic, hydrographic and offshore industries. Klein develops and manufactures high performance side scan sonar systems.

Forum Energy Technologies Company Profile

Forum Energy Technologies, Inc. is an oilfield products company. The Company designs, manufactures and distributes products, and engages in aftermarket services, parts supply and related services. The Company operates through three segments: Drilling & Subsea, Completions, and Production & Infrastructure. The Drilling & Subsea segment designs and manufactures products, and provides related services to the drilling and subsea construction markets. The Completions segment designs, manufactures and supplies products, and provide related services to the well construction, completion, stimulation and intervention markets. The Production & Infrastructure segment designs, manufactures and supplies products, and provides related equipment and services to production and infrastructure markets. Its product offering includes a mix of engineered capital products and replaced items that are used in the exploration, development, production and transportation of oil and natural gas.

Receive News & Stock Ratings for IRIS International Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for IRIS International Inc. and related stocks with our FREE daily email newsletter.