Propetro (NYSE:PUMP) and Gulf Island Fabrication (NASDAQ:GIFI) are both oils/energy companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, risk, earnings and dividends.

Volatility and Risk

Propetro has a beta of 1.82, indicating that its share price is 82% more volatile than the S&P 500. Comparatively, Gulf Island Fabrication has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500.

Institutional & Insider Ownership

91.1% of Propetro shares are held by institutional investors. Comparatively, 65.8% of Gulf Island Fabrication shares are held by institutional investors. 5.0% of Propetro shares are held by insiders. Comparatively, 4.5% of Gulf Island Fabrication shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Propetro and Gulf Island Fabrication, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Propetro 0 0 4 0 3.00
Gulf Island Fabrication 0 0 0 0 N/A

Propetro currently has a consensus price target of $25.50, suggesting a potential upside of 18.33%. Given Propetro’s higher possible upside, analysts clearly believe Propetro is more favorable than Gulf Island Fabrication.

Profitability

This table compares Propetro and Gulf Island Fabrication’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Propetro 10.20% 30.52% 17.46%
Gulf Island Fabrication -9.54% -9.75% -7.78%

Earnings & Valuation

This table compares Propetro and Gulf Island Fabrication’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Propetro $1.70 billion 1.27 $173.86 million $2.00 10.78
Gulf Island Fabrication $221.25 million 0.62 -$20.38 million N/A N/A

Propetro has higher revenue and earnings than Gulf Island Fabrication.

Summary

Propetro beats Gulf Island Fabrication on 11 of the 11 factors compared between the two stocks.

About Propetro

ProPetro Holding Corp., an oilfield services company, provides pressure pumping and other related services. The company offers hydraulic fracturing services; and a suite of well completion and production services, including cementing, acidizing, coiled tubing, flowback, surface air drilling, and drilling services. It serves the upstream oil and gas companies engaged in the exploration and production of North American unconventional oil and natural gas resources in the Permian Basin. As of December 31, 2018, the company's fleet comprised 20 hydraulic fracturing units with 905,000 hydraulic horsepower. ProPetro Holding Corp. was founded in 2007 and is headquartered in Midland, Texas.

About Gulf Island Fabrication

Gulf Island Fabrication, Inc., through its subsidiaries, operates as a fabricator of offshore drilling and production platforms, and other steel structures in the United States. The company fabricates jackets and deck sections of fixed production platforms; hull, tendon, and/or deck sections of floating production platforms, such as tension leg platforms, single point anchor reservoirs, floating production storage and offloading vessels, and minimum deepwater operating concepts; pressure vessels; and piles, wellhead protectors, and subsea templates, as well as various production, compressor, and utility modules. It also fabricates and repairs offshore supply vessels, anchor handling vessels, lift boats, tugboats, towboats, barges, and other marine vessels; constructs dry docks to lift marine vessels; undertakes conversion projects; and offers steel repair, blasting and painting, electrical systems repair, and machinery and piping system repair services, as well as propeller, shaft, and rudder reconditioning services. In addition, the company provides interconnect piping services on offshore platforms and inshore structures; and onshore and offshore scaffolding and piping insulation services. Further, it fabricates packaged skid units; offers on-site construction and maintenance services; and undertakes engineering, procurement, construction, installation, commissioning, and start-up projects. The company serves oil and gas companies and their contractors; petrochemical, marine, offshore support, offshore and inland barge, alternative energy, and diving companies; support vessel operators; and offshore construction contractors, as well as the U.S. Army Corps of Engineers, the U.S. Coast Guard, the U.S. Navy, and state and local governmental agencies and their contractors. Gulf Island Fabrication, Inc. was founded in 1985 and is headquartered in Houston, Texas.

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