Fairmount Santrol Holdings (NYSE: FMSA) and Forum Energy Technologies (NYSE:FET) are both small-cap industrial products companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, dividends, valuation and analyst recommendations.

Analyst Recommendations

This is a summary of recent recommendations for Fairmount Santrol Holdings and Forum Energy Technologies, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fairmount Santrol Holdings 2 7 9 0 2.39
Forum Energy Technologies 0 11 5 0 2.31

Fairmount Santrol Holdings currently has a consensus price target of $6.79, indicating a potential upside of 33.35%. Forum Energy Technologies has a consensus price target of $19.27, indicating a potential upside of 28.44%. Given Fairmount Santrol Holdings’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Fairmount Santrol Holdings is more favorable than Forum Energy Technologies.

Valuation & Earnings

This table compares Fairmount Santrol Holdings and Forum Energy Technologies’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Fairmount Santrol Holdings $681.12 million 1.67 $84.28 million ($0.20) -25.45
Forum Energy Technologies $657.68 million 2.20 -$22.64 million ($1.31) -11.45

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

Volatility and Risk

Fairmount Santrol Holdings has a beta of 2.12, indicating that its share price is 112% more volatile than the S&P 500. Comparatively, Forum Energy Technologies has a beta of 1.71, indicating that its share price is 71% more volatile than the S&P 500.

Profitability

This table compares Fairmount Santrol Holdings and Forum Energy Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fairmount Santrol Holdings -6.11% -24.37% -3.68%
Forum Energy Technologies -18.89% -4.55% -3.03%

Institutional & Insider Ownership

84.2% of Fairmount Santrol Holdings shares are held by institutional investors. 9.8% of Fairmount Santrol Holdings shares are held by insiders. Comparatively, 32.8% of Forum Energy Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Fairmount Santrol Holdings beats Forum Energy Technologies on 9 of the 13 factors compared between the two stocks.

Fairmount Santrol Holdings Company Profile

Fairmount Santrol Holdings Inc. is a provider of sand-based proppant solutions. The Company operates through two segments: Proppant Solutions, and Industrial & Recreational (I&R) Products. Its Proppant Solutions segment provides sand-based proppants for use in hydraulic fracturing operations throughout the United States and Canada, Argentina, Mexico, China, northern Europe and the United Arab Emirates. Its I&R segment provides raw, coated, and custom blended sands to the foundry, building products, glass, turf and landscape, and filtration industries in North America. Its asset base includes approximately 800 million tons of proven and probable mineral reserves. As of March 2017, the Company had 10 sand processing facilities with 16.8 million tons of annual sand processing capacity. Its coating facilities include operations in Mexico, Denmark and China, through which it serves international oil and gas markets.

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.

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