Deep Down (OTCMKTS: DPDW) and Superior Drilling Products (NASDAQ:SDPI) are both small-cap oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, profitability, earnings, analyst recommendations, institutional ownership and dividends.

Institutional and Insider Ownership

6.0% of Deep Down 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.

Earnings & Valuation

This table compares Deep Down and Superior Drilling Products’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Deep Down $26.05 million 0.56 $3.07 million $0.10 9.60
Superior Drilling Products $12.01 million 1.10 $1.88 million N/A N/A

Deep Down has higher revenue and earnings than Superior Drilling Products.

Profitability

This table compares Deep Down and Superior Drilling Products’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Deep Down 6.51% 7.27% 6.26%
Superior Drilling Products N/A N/A N/A

Analyst Ratings

This is a breakdown of current recommendations for Deep Down and Superior Drilling Products, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Deep Down 0 0 0 0 N/A
Superior Drilling Products 0 0 2 0 3.00

Superior Drilling Products has a consensus target price of $2.00, indicating a potential upside of 127.27%. Given Superior Drilling Products’ higher probable upside, analysts plainly believe Superior Drilling Products is more favorable than Deep Down.

Summary

Deep Down beats Superior Drilling Products on 6 of the 9 factors compared between the two stocks.

About Deep Down

Deep Down, Inc. is engaged in the oilfield services industry. The Company operates through Deep Down Delaware segment. The Company is a provider of specialized services to the offshore energy industry to support deep water and ultra-deep water exploration, development and production of oil and gas, and other maritime operations. It also produces custom engineered products that assist it in fulfilling service objectives for specific projects on a contractual basis. The Company designs and manufactures deep water and ultra-deep water, surface and offshore equipment solutions, which are used by independent and foreign national oil and gas companies in offshore areas across the world. The Company provides engineering and management services, including the design, installation and retrieval of subsea equipment and systems, connection and termination operations, well-commissioning services, as well as construction support and remotely operated vehicle (ROV) operations support.

About Superior Drilling Products

Superior Drilling Products, Inc., a drilling and completion tool technology company, innovates, designs, engineers, manufactures, sells, rents, and repairs drilling and completion tools in the United States and internationally. It is involved in the design and manufacture of new drill bit and horizontal drill string enhancement tools for the oil, natural gas, and mining services industries; and the refurbishment of polycrystalline diamond compact drill bits. The company’s horizontal drilling tools include Drill N Ream, a dual-section reaming tool; Strider, a drill string oscillation system; V-Stream, an advanced conditioning system; and Dedicated Reamer Stinger that is used to enhance dedicated reamer operations. It serves companies operating in the exploration and production of oil and natural gas. The company was formerly known as SD Company, Inc. and changed its name to Superior Drilling Products, Inc. in May 2014. Superior Drilling Products, Inc. was founded in 1999 and is headquartered in Vernal, Utah.

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