Financial Analysis: RPC (RES) and Select Energy Services (WTTR)
RPC (NYSE: WTTR) and Select Energy Services (NYSE:WTTR) are both oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, institutional ownership and risk.
This is a summary of recent ratings and price targets for RPC and Select Energy Services, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Select Energy Services||0||2||9||0||2.82|
RPC pays an annual dividend of $0.40 per share and has a dividend yield of 2.8%. Select Energy Services does not pay a dividend. RPC pays out 60.6% of its earnings in the form of a dividend. RPC has increased its dividend for 5 consecutive years.
Volatility & Risk
RPC has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500. Comparatively, Select Energy Services has a beta of 2.44, suggesting that its share price is 144% more volatile than the S&P 500.
This table compares RPC and Select Energy Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Select Energy Services||1.58%||3.53%||2.76%|
Institutional & Insider Ownership
31.8% of RPC shares are owned by institutional investors. Comparatively, 52.4% of Select Energy Services shares are owned by institutional investors. 73.7% of RPC shares are owned by company insiders. Comparatively, 8.3% of Select Energy Services shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares RPC and Select Energy Services’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|RPC||$1.60 billion||1.94||$162.51 million||$0.66||21.83|
|Select Energy Services||$692.49 million||2.06||-$16.81 million||$0.80||16.68|
RPC has higher revenue and earnings than Select Energy Services. Select Energy Services is trading at a lower price-to-earnings ratio than RPC, indicating that it is currently the more affordable of the two stocks.
RPC beats Select Energy Services on 10 of the 17 factors compared between the two stocks.
RPC Company Profile
RPC, Inc. provides a range of oilfield services and equipment for the oil and gas companies involved in the exploration, production, and development of oil and gas properties. The company operates through Technical Services and Support Services segments. The Technical Services offers pressure pumping, fracturing, acidizing, downhole tools, coiled tubing, snubbing, nitrogen, well control, wireline, pump down, and fishing services that are used in the completion, production, and maintenance of oil and gas wells. The Support Services segment provides a range of rental tools, including blowout preventors, high pressure manifolds and valves, hevi-wate drill pipes, tubing products, production related rental tools, pumps, diverters, drill pipes, drill collars, handling tools, Coflexip hoses, and Wear Knot drill pipes that are used for onshore and offshore oil and gas well drilling, completion, and workover activities. This segment also offers oilfield pipe inspection, and pipe management and storage services; and oilfield training and consulting services. It operates in the United States, Africa, Canada, Argentina, China, Mexico, Eastern Europe, Latin America, the Middle East, and internationally. RPC, Inc. was founded in 1984 and is headquartered in Atlanta, Georgia.
Select Energy Services Company Profile
Select Energy Services, Inc., an oilfield services company, provides water management and chemical solutions to the unconventional oil and gas industry in the United States and Western Canada. The company operates through three segments: Water Solutions, Oilfield Chemicals, and Wellsite Services. The Water Solutions segment provides water-related services, including the sourcing of water; the transfer of the water to the wellsite through permanent pipeline infrastructure and temporary hose; the containment of fluids off-and on-location; measuring and monitoring of water; the filtering and treatment of fluids, well testing, and handling of flowback and produced formation water; and the transportation and recycling or disposal of drilling, completion, and production fluids. The Oilfield Chemicals segment develops, manufactures, and provides various chemicals, such as polymer slurries, crosslinkers, friction reducers, surfactants, buffers, breakers, and other chemical technologies for use in hydraulic fracturing, stimulation, cementing, and well completions to pressure pumping service companies. It also provides production treating chemicals for use in oil and gas production; ancillary oilfield services comprising corrosion and scale monitoring, chemical inventory management, and well failure analysis; lab services; and various fracturing, acid, and coiled tubing products for the coiled tubing industry. The Wellsite Services segment provides various services comprising workforce accommodation and surface equipment rental, crane and logistics, wellsite and pipeline construction, and field services. This segment also offers sand hauling and logistics services; and water transfer, containment, fluids hauling, and other rental services. Select Energy Services, Inc. was founded in 2016 and is headquartered in Houston, Texas.
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