Comparing Newpark Resources (NR) & CSI Compressco (CCLP)
Newpark Resources (NYSE: NR) and CSI Compressco (NASDAQ:CCLP) are both small-cap oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, dividends and valuation.
Insider and Institutional Ownership
28.7% of CSI Compressco shares are owned by institutional investors. 4.9% of Newpark Resources shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This is a breakdown of recent ratings and target prices for Newpark Resources and CSI Compressco, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Newpark Resources currently has a consensus price target of $9.25, suggesting a potential downside of 7.50%. CSI Compressco has a consensus price target of $6.00, suggesting a potential upside of 15.16%. Given CSI Compressco’s higher possible upside, analysts plainly believe CSI Compressco is more favorable than Newpark Resources.
Valuation & Earnings
This table compares Newpark Resources and CSI Compressco’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Newpark Resources||$583.35 million||1.47||$24.26 million||($0.15)||-66.67|
Newpark Resources has higher revenue and earnings than CSI Compressco. Newpark Resources is trading at a lower price-to-earnings ratio than CSI Compressco, indicating that it is currently the more affordable of the two stocks.
CSI Compressco pays an annual dividend of $0.75 per share and has a dividend yield of 14.4%. Newpark Resources does not pay a dividend. CSI Compressco pays out -50.0% of its earnings in the form of a dividend.
This table compares Newpark Resources and CSI Compressco’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Newpark Resources has a beta of 1.64, suggesting that its share price is 64% more volatile than the S&P 500. Comparatively, CSI Compressco has a beta of 2.01, suggesting that its share price is 101% more volatile than the S&P 500.
Newpark Resources beats CSI Compressco on 8 of the 13 factors compared between the two stocks.
About Newpark Resources
Newpark Resources, Inc. is a supplier providing products and services primarily to the oil and gas exploration and production (E&P) industry. The Company’s segments include Fluids Systems, and Mats and Integrated Services. The Fluids Systems segment provides drilling fluids products and technical services to customers in the North America; Europe, the Middle East and Africa; Latin America, and Asia Pacific regions. The Mats and Integrated Services segment provides composite mat rentals, as well as location construction and related site services, to customers at well, production, transportation and refinery locations in the United States. It manufactures and sells composite mats to customers outside of the United States, and to domestic customers outside of the oil and gas exploration market. The Fluids Systems segment offers customized solutions for technical drilling projects involving subsurface conditions, such as horizontal, directional, geologically deep or deep water drilling.
About CSI Compressco
CSI Compressco LP is a provider of compression services and equipment for natural gas and oil production, gathering, transportation, processing and storage. The Company sells custom-designed compressor packages and oilfield fluid pump systems, and provides aftermarket services and compressor package parts and components manufactured by third-party suppliers. It provides these compression services and equipment to a base of natural gas and oil exploration and production, midstream and transmission companies operating throughout many of the onshore producing regions of the United States, as well as in a number of foreign countries, including Mexico, Canada and Argentina. It is a service provider of natural gas compression services in the United States, utilizing its fleet of compressor packages that employs a spectrum of low-, medium- and high-horsepower engines. As of December 31, 2016, its fleet included approximately 6,000 compressor packages.
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