CSI Compressco (NASDAQ: CCLP) and RPC (NYSE:RES) are both oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, risk and valuation.

Risk & Volatility

CSI Compressco has a beta of 2.01, meaning that its stock price is 101% more volatile than the S&P 500. Comparatively, RPC has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for CSI Compressco and RPC, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CSI Compressco 1 3 0 0 1.75
RPC 0 10 8 0 2.44

CSI Compressco currently has a consensus price target of $6.00, indicating a potential upside of 16.50%. RPC has a consensus price target of $23.26, indicating a potential downside of 3.39%. Given CSI Compressco’s higher possible upside, equities research analysts plainly believe CSI Compressco is more favorable than RPC.

Earnings & Valuation

This table compares CSI Compressco and RPC’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CSI Compressco N/A N/A N/A ($1.50) -3.43
RPC $1.09 billion 4.80 $155.79 million ($0.06) -401.27

RPC has higher revenue and earnings than CSI Compressco. RPC is trading at a lower price-to-earnings ratio than CSI Compressco, indicating that it is currently the more affordable of the two stocks.

Dividends

CSI Compressco pays an annual dividend of $0.75 per share and has a dividend yield of 14.6%. RPC pays an annual dividend of $0.11 per share and has a dividend yield of 0.5%. CSI Compressco pays out -50.0% of its earnings in the form of a dividend. RPC pays out -183.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. CSI Compressco has increased its dividend for 4 consecutive years. CSI Compressco is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

28.7% of CSI Compressco shares are held by institutional investors. Comparatively, 38.2% of RPC shares are held by institutional investors. 73.5% of RPC 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.

Profitability

This table compares CSI Compressco and RPC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CSI Compressco -17.01% -36.43% -6.45%
RPC -1.15% -1.74% -1.36%

Summary

RPC beats CSI Compressco on 10 of the 14 factors compared between the two stocks.

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.

About RPC

RPC, Inc. (RPC) is a holding company for several oilfield services companies. The Company provides a range of specialized oilfield services and equipment primarily to independent oil and gas companies engaged in the exploration, production and development of oil and gas properties throughout the United States, including the southwest, mid-continent, Gulf of Mexico, Rocky Mountain and Appalachian regions, and in selected international markets. The Company’s segments are Technical Services and Support Services. The Technical Services segment consists primarily of pressure pumping, downhole tools, coiled tubing, snubbing, nitrogen, well control, wireline and fishing. Its Support Services include all of the services that provide equipment for customers’ use on the well site without RPC personnel and services that are provided in support of customer operations off the well site, such as classroom and computer training, and other consulting services.

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