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

Earnings and Valuation

This table compares Keane Group and Profire Energy’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Keane Group $420.57 million 4.51 -$187.08 million ($1.22) -13.91
Profire Energy $27.07 million 3.26 $3.39 million $0.07 26.00

Profire Energy has lower revenue, but higher earnings than Keane Group. Keane Group is trading at a lower price-to-earnings ratio than Profire Energy, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Keane Group and Profire Energy, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Keane Group 0 9 10 0 2.53
Profire Energy 0 0 1 0 3.00

Keane Group presently has a consensus target price of $20.78, suggesting a potential upside of 22.44%. Profire Energy has a consensus target price of $2.50, suggesting a potential upside of 37.36%. Given Profire Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Profire Energy is more favorable than Keane Group.

Institutional & Insider Ownership

38.3% of Keane Group shares are owned by institutional investors. Comparatively, 20.2% of Profire Energy shares are owned by institutional investors. 51.1% of Profire Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Keane Group and Profire Energy’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%
Profire Energy 10.88% 8.96% 8.43%

Summary

Profire Energy beats Keane Group on 8 of the 12 factors compared between the two stocks.

About Keane Group

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.

About Profire Energy

Profire Energy, Inc. is an oilfield technology company. The Company is primarily engaged in the business of developing combustion management technologies for the oil and gas industry. It specializes in the creation of burner-management systems, used on a range of oilfield natural-draft fire tube vessels. It offers burner-management systems, which help to ignite, monitor and manage the burner flame. Its solution, the PF3100, helps manage and synchronize custom applications helping oilfield producers meet deadlines through an off-the-shelf solution with dynamic customization. It also sells complementary oilfield products. Such products help manage fuel flow (such as valves and fuel trains), meter air flow (such as airplates), generate power on-site (such as solar packages), ignite and direct flame (such as flare stack igniter and nozzles), and other functions. In addition to the burner-management systems and complementary technologies, it also offers chemical-management systems.

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