Critical Survey: Smart Sand (NASDAQ:SND) & NXT Energy Solutions (OTCMKTS:NSFDF)

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

Valuation and Earnings

This table compares Smart Sand and NXT Energy Solutions”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Smart Sand	$330.15 million	0.69	$1.35 million	$0.55	9.67
NXT Energy Solutions	$11.70 million	3.18	-$1.66 million	($0.09)	-3.45

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

Risk & Volatility

Smart Sand has a beta of 0.32, suggesting that its share price is 68% less volatile than the S&P 500. Comparatively, NXT Energy Solutions has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Smart Sand	6.07%	N/A	N/A
NXT Energy Solutions	-312.44%	-91.43%	-66.88%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Smart Sand and NXT Energy Solutions, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smart Sand	0	1	0	0	2.00
NXT Energy Solutions	0	0	0	0	0.00

Insider and Institutional Ownership

35.2% of Smart Sand shares are owned by institutional investors. Comparatively, 26.2% of NXT Energy Solutions shares are owned by institutional investors. 34.0% of Smart Sand shares are owned by company insiders. Comparatively, 34.1% of NXT Energy Solutions shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Smart Sand beats NXT Energy Solutions on 9 of the 12 factors compared between the two stocks.

About Smart Sand

Smart Sand, Inc., an integrated frac and industrial sand supply and services company, engages in the excavation, processing, and sale of sands or proppant for use in hydraulic fracturing operations in the oil and gas industry in the United States. It also provides proppant logistics services; and wellsite storage solutions through SmartSystems products and services. The company sells its products primarily to oil and natural gas exploration and production companies, oilfield service companies, and industrial manufacturers. Smart Sand, Inc. was incorporated in 2011 and is headquartered in Spring, 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.