Critical Analysis: Tetra Technologies (NYSE:TTI) and NXT Energy Solutions (OTCMKTS:NSFDF)

Tetra Technologies (NYSE:TTI) and NXT Energy Solutions (OTCMKTS:NSFDF) are both small-cap energy companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, earnings, dividends and institutional ownership.

Earnings and Valuation

This table compares Tetra Technologies and NXT Energy Solutions”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tetra Technologies	$630.93 million	2.10	$3.01 million	$0.05	195.72
NXT Energy Solutions	$11.70 million	2.84	-$1.66 million	($0.02)	-13.90

Tetra Technologies has higher revenue and earnings than NXT Energy Solutions. NXT Energy Solutions is trading at a lower price-to-earnings ratio than Tetra Technologies, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Tetra Technologies and NXT Energy Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tetra Technologies	1.15%	10.50%	4.59%
NXT Energy Solutions	-16.33%	-21.32%	-13.28%

Analyst Recommendations

This is a summary of current recommendations for Tetra Technologies and NXT Energy Solutions, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tetra Technologies	0	2	4	0	2.67
NXT Energy Solutions	0	0	0	0	0.00

Tetra Technologies currently has a consensus price target of $10.25, suggesting a potential upside of 4.74%. Given Tetra Technologies’ stronger consensus rating and higher probable upside, research analysts clearly believe Tetra Technologies is more favorable than NXT Energy Solutions.

Institutional & Insider Ownership

70.2% of Tetra Technologies shares are held by institutional investors. Comparatively, 26.2% of NXT Energy Solutions shares are held by institutional investors. 6.3% of Tetra Technologies shares are held by insiders. Comparatively, 34.1% of NXT Energy Solutions shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Tetra Technologies has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500. Comparatively, NXT Energy Solutions has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500.

Summary

Tetra Technologies beats NXT Energy Solutions on 11 of the 14 factors compared between the two stocks.

About Tetra Technologies

TETRA Technologies, Inc., together with its subsidiaries, operates as an energy services and solutions company. It operates through two segments, Completion Fluids & Products Division and Water & Flowback Services. The Completion Fluids & Products segment manufactures and markets clear brine fluids, additives, and associated products and services to the oil and gas industry for use in well drilling, completion, and workover operations in the United States, as well as in Latin America, Europe, Asia, the Middle East, and Africa. This segment also markets liquid and dry calcium chloride products; and TETRA PureFlow ultra-pure zinc bromide to battery technology companies. The Water & Flowback Services segment provides water management services for onshore oil and gas operators. This segment also offers frac flowback, production well testing, and other associated services in oil and gas producing regions in the United States, as well as in various basins in Latin America, Africa, Europe, and the Middle East. TETRA Technologies, Inc. was incorporated in 1981 and is headquartered in The Woodlands, Texas.

About NXT Energy Solutions

NXT Energy Solutions Inc., a technology company, provides services to the oil and gas industry through its proprietary stress field detection (SFD) technology worldwide. Its SFD technology, a remote sensing airborne survey system utilizes quantum-scale sensors to detect gravity field perturbations in an airborne survey method which can be used onshore and offshore to remotely identify traps and reservoirs with hydrocarbon and geothermal exploration potential. The company was formerly known as Energy Exploration Technologies Inc. and changed its name to NXT Energy Solutions Inc. in September 2008. NXT Energy Solutions Inc. was incorporated in 1994 and is headquartered in Calgary, Canada.