Eco-Stim Energy Solutions (OTCMKTS:ESES) and NexTier Oilfield Solutions (NYSE:NEX) are both small-cap oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, earnings, analyst recommendations and profitability.

Insider and Institutional Ownership

92.2% of NexTier Oilfield Solutions shares are held by institutional investors. 4.7% of Eco-Stim Energy Solutions shares are held by company insiders. Comparatively, 0.5% of NexTier Oilfield Solutions shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Eco-Stim Energy Solutions and NexTier Oilfield Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Eco-Stim Energy Solutions N/A N/A N/A
NexTier Oilfield Solutions -7.70% -3.94% -1.90%

Valuation & Earnings

This table compares Eco-Stim Energy Solutions and NexTier Oilfield Solutions’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Eco-Stim Energy Solutions $40.71 million 0.00 -$87.87 million N/A N/A
NexTier Oilfield Solutions $1.82 billion 0.28 -$106.16 million ($0.23) -10.52

Eco-Stim Energy Solutions has higher earnings, but lower revenue than NexTier Oilfield Solutions.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Eco-Stim Energy Solutions and NexTier Oilfield Solutions, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eco-Stim Energy Solutions 0 0 0 0 N/A
NexTier Oilfield Solutions 0 5 7 0 2.58

NexTier Oilfield Solutions has a consensus price target of $4.41, suggesting a potential upside of 82.08%. Given NexTier Oilfield Solutions’ higher probable upside, analysts plainly believe NexTier Oilfield Solutions is more favorable than Eco-Stim Energy Solutions.

Volatility & Risk

Eco-Stim Energy Solutions has a beta of 2.1, indicating that its share price is 110% more volatile than the S&P 500. Comparatively, NexTier Oilfield Solutions has a beta of 3.49, indicating that its share price is 249% more volatile than the S&P 500.

Summary

NexTier Oilfield Solutions beats Eco-Stim Energy Solutions on 6 of the 11 factors compared between the two stocks.

About Eco-Stim Energy Solutions

Eco-Stim Energy Solutions, Inc. provides oilfield services in the United States and Argentina. The company offers pressure pumping, coiled tubing, and field management services to the upstream oil and gas industry. Its customers consist primarily of international oil and gas exploration and production companies, including national oil companies, local privately-held exploration and production companies, and other service companies. The company is headquartered in Houston, Texas.

About NexTier Oilfield Solutions

NexTier Oilfield Solutions Inc. provides integrated well completion services primarily in the United States. Its principal service offerings include horizontal and vertical fracturing, wireline perforation and logging, and engineered solutions. The company also provides cementing and drilling services; and engineering software and technical guidance for remedial cementing applications and acidizing. Its customers primarily include integrated and large independent oil and natural gas exploration and production companies. The company has 29 hydraulic fracturing fleets, 34 wireline trucks, 24 cementing pumps, and other ancillary assets located in the Permian Basin, the Marcellus Shale/Utica Shale, the Eagle Ford Formation, the Bakken Formation, and other active oil and gas basins. NexTier Oilfield Solutions Inc. was founded in 1973 and is headquartered in Houston, Texas. NexTier Oilfield Solutions Inc. is a subsidiary of Keane Investor Holdings LLC.

Receive News & Ratings for Eco-Stim Energy Solutions Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Eco-Stim Energy Solutions and related companies with MarketBeat.com's FREE daily email newsletter.