RigNet (NASDAQ: RNET) and Select Egy Svcs (NYSE:WTTR) are both small-cap energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Profitability

This table compares RigNet and Select Egy Svcs’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RigNet -8.25% -15.01% -7.30%
Select Egy Svcs -6.18% -6.04% -4.91%

Analyst Ratings

This is a breakdown of recent recommendations for RigNet and Select Egy Svcs, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RigNet 0 2 1 0 2.33
Select Egy Svcs 1 1 6 0 2.63

RigNet presently has a consensus target price of $19.33, suggesting a potential upside of 28.89%. Select Egy Svcs has a consensus target price of $19.00, suggesting a potential upside of 25.33%. Given RigNet’s higher probable upside, equities research analysts plainly believe RigNet is more favorable than Select Egy Svcs.

Institutional and Insider Ownership

91.3% of RigNet shares are owned by institutional investors. Comparatively, 33.1% of Select Egy Svcs shares are owned by institutional investors. 1.2% of RigNet shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares RigNet and Select Egy Svcs’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
RigNet $220.62 million 1.24 -$11.50 million ($0.79) -18.99
Select Egy Svcs $302.39 million 3.45 -$307.52 million N/A N/A

RigNet has higher revenue, but lower earnings than Select Egy Svcs.

Summary

Select Egy Svcs beats RigNet on 7 of the 11 factors compared between the two stocks.

RigNet Company Profile

RigNet, Inc. (RigNet) provides customized systems and solutions serving customers with data networking and operational requirements. The Company provides voice and data network, video conferencing and monitoring, crew welfare, asset and weather monitoring, and real-time data services. It operates through two segments: Managed Services, and Systems Integration and Automation (SI&A). The Managed Services segment provides remote communications services for offshore and onshore drilling rigs and production facilities, as well as, support vessels and other remote sites. The SI&A segment provides customized solutions for customer telecommunications systems. As of December 31, 2016, the Company provided remote communications and collaborative services to approximately 500 customers reaching approximately 900 remote sites located in approximately 50 countries on six continents. It provides managed remote communications, engineered telecommunications solutions and applications.

Select Egy Svcs Company Profile

Select Energy Services, Inc. is a holding company. The Company is provider of total water solutions to the United States unconventional oil and gas industry. The Company is engaged in sourcing and transfer of water prior to its use in drilling and completion activities associated with hydraulic fracturing or fracking, which collectively referrd to as pre-frac water services. The Company provides its services to integrated and exploration and production (E&P) companies. Its operating segments include water solutions, accommodation and rentals, and wellsite completion and constructive services. The Company’s services include water sourcing, water transfer, water treatment, fluid handling, disposal solutions, accommodations, rentals, and wellsite construction. The Company also provides complementary water-related services that support oil and gas well completion and production activities including containment, monitoring, treatment, flowback, hauling and disposal.

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