KLX Energy Services (NASDAQ:KLXE) and Key Energy Services (NYSE:KEG) are both small-cap oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, valuation, profitability, dividends, risk and analyst recommendations.

Profitability

This table compares KLX Energy Services and Key Energy Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
KLX Energy Services N/A N/A N/A
Key Energy Services -17.26% -383.21% -21.26%

Institutional & Insider Ownership

85.8% of KLX Energy Services shares are held by institutional investors. Comparatively, 48.9% of Key Energy Services shares are held by institutional investors. 1.6% of Key Energy Services shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares KLX Energy Services and Key Energy Services’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
KLX Energy Services $495.30 million 1.06 $14.40 million $2.81 8.07
Key Energy Services $521.70 million 0.09 -$88.80 million ($4.53) -0.49

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for KLX Energy Services and Key Energy Services, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
KLX Energy Services 0 0 3 0 3.00
Key Energy Services 0 3 1 0 2.25

KLX Energy Services presently has a consensus price target of $30.00, indicating a potential upside of 32.28%. Key Energy Services has a consensus price target of $5.08, indicating a potential upside of 131.06%. Given Key Energy Services’ higher possible upside, analysts clearly believe Key Energy Services is more favorable than KLX Energy Services.

Summary

KLX Energy Services beats Key Energy Services on 10 of the 13 factors compared between the two stocks.

About KLX Energy Services

KLX Energy Services Holdings, Inc. provides completion, intervention, and production services and products to the onshore oil and gas producing regions of the United States. It offers a range of technical services, and related tools and equipment to companies engaged in the exploration and development of North American onshore conventional and unconventional oil and natural gas reserves. The company was incorporated in 2018 and is headquartered in Wellington, Florida.

About Key Energy Services

Key Energy Services, Inc. operates as an onshore rig-based well servicing contractor in the United States. It operates through Rig Services, Fishing and Rental Services, Coiled Tubing Services, and Fluid Management Services segments. The Rig Services segment is involved in the completion of newly drilled wells; workover and recompletion of existing oil and natural gas wells; well maintenance activities; and plugging and abandonment of wells at the end of their useful lives, as well as provision of specialty drilling services to oil and natural gas producers. The Fishing and Rental Services segment provides fishing services that involve recovering lost or stuck equipment in the wellbore utilizing fishing tools; and rents drill pipes, tubulars, handling tools, pressure-control equipment, pumps, power swivels, reversing units, and foam air units. The Coiled Tubing Services segment offers services for wellbore clean-outs, nitrogen jet lifts, through-tubing fishing, and formation stimulations; mills temporary isolation plugs that separate frac zones; and other pre- and post-hydraulic fracturing well preparation services. The Fluid Management Services segment offers transportation and well-site storage services for fluids utilized in drilling, completions, workover, and maintenance activities; and disposal services for fluids produced subsequent to well completion. It also operates a fleet of hot oilers used to clear soluble restrictions in a wellbore. The company was formerly known as Key Energy Group, Inc. and changed its name to Key Energy Services, Inc. in December 1998. Key Energy Services, Inc. was founded in 1977 and is based in Houston, Texas.

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