Keane Group (NYSE: FRAC) and CGG (NYSE:CGG) are both small-cap oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, valuation, analyst recommendations, profitability and earnings.

Institutional and Insider Ownership

38.3% of Keane Group shares are owned by institutional investors. Comparatively, 0.2% of CGG shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Keane Group and CGG’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Keane Group $420.57 million 4.16 -$187.08 million N/A N/A
CGG $1.20 billion 0.09 -$573.40 million ($32.40) -0.16

Keane Group has higher earnings, but lower revenue than CGG.

Analyst Recommendations

This is a summary of recent recommendations for Keane Group and CGG, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Keane Group 0 9 10 0 2.53
CGG 0 0 0 0 N/A

Keane Group currently has a consensus price target of $20.78, indicating a potential upside of 32.85%. Given Keane Group’s higher possible upside, equities analysts clearly believe Keane Group is more favorable than CGG.

Profitability

This table compares Keane Group and CGG’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Keane Group -9.90% -19.19% -8.80%
CGG -57.48% -80.57% -15.78%

Summary

Keane Group beats CGG on 8 of the 9 factors compared between the two stocks.

Keane Group Company Profile

Keane Group, Inc. is provider of integrated well completion services in the United States, with a focus on demanding completion solutions. The Company’s segments include Completion Services, which comprises hydraulic fracturing and wireline divisions, and Other Services, which consists of coiled tubing, cementing and drilling divisions. It provides hydraulic fracturing and wireline services pursuant to contractual arrangements, such as term contracts and pricing agreements, or on a spot market basis. It provides certain complementary services such as coiled tubing, cementing and drilling pursuant to contractual arrangements, such as term contracts on a spot basis. Its primary services include horizontal and vertical fracturing, wireline perforation and logging and engineered solutions, as well as other value-added service offerings. As of July 3, 2017, the Company had approximately 1.2 million hydraulic horsepower spread across 23 hydraulic fracturing fleets and 31 wireline trucks.

CGG Company Profile

CGG SA (CGG) is a manufacturer of geophysical equipment. The Company provides marine, land and airborne data acquisition services, as well as a range of other geoscience services, including data imaging, geoscience and petroleum engineering consulting services, and collecting, developing and licensing geological data. Its segments include Contractual Data Acquisition; Geology, Geophysics & Reservoir (GGR); Equipment, and Non-Operated Resources. The Contractual Data Acquisition includes marine, and land and multi-physics. Its GGR segment includes the Multi-client business line and the Subsurface Imaging and Reservoir business lines (processing and imaging of geophysical data, reservoir characterization, geophysical consulting and software services, geological data library and data management solutions). The Equipment segment consists of its manufacturing and sales activities for seismic equipment. It operates through Saturno, a multi-client survey over Santos Basin Offshore Brazil.

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