ProPetro (NYSE:PUMP – Get Free Report) and Forum Energy Technologies (NYSE:FET – Get Free Report) are both small-cap energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.
Institutional & Insider Ownership
84.7% of ProPetro shares are owned by institutional investors. Comparatively, 65.6% of Forum Energy Technologies shares are owned by institutional investors. 1.5% of ProPetro shares are owned by company insiders. Comparatively, 7.7% of Forum Energy Technologies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Earnings & Valuation
This table compares ProPetro and Forum Energy Technologies”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ProPetro | $1.27 billion | 0.79 | $820,000.00 | ($0.11) | -74.36 |
| Forum Energy Technologies | $791.47 million | 1.17 | -$9.66 million | ($0.15) | -548.01 |
ProPetro has higher revenue and earnings than Forum Energy Technologies. Forum Energy Technologies is trading at a lower price-to-earnings ratio than ProPetro, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares ProPetro and Forum Energy Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ProPetro | -1.15% | -1.49% | -0.89% |
| Forum Energy Technologies | -0.19% | 9.45% | 3.58% |
Risk & Volatility
ProPetro has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500. Comparatively, Forum Energy Technologies has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for ProPetro and Forum Energy Technologies, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ProPetro | 1 | 4 | 8 | 0 | 2.54 |
| Forum Energy Technologies | 1 | 0 | 0 | 1 | 2.50 |
ProPetro presently has a consensus price target of $15.05, suggesting a potential upside of 83.99%. Given ProPetro’s stronger consensus rating and higher probable upside, equities research analysts clearly believe ProPetro is more favorable than Forum Energy Technologies.
Summary
ProPetro beats Forum Energy Technologies on 8 of the 14 factors compared between the two stocks.
About ProPetro
ProPetro Holding Corp. operates as an integrated oilfield services company. The company provides hydraulic fracturing, wireline, cementing, and other complementary oilfield completion services to upstream oil and gas companies in the Permian Basin. ProPetro Holding Corp. was founded in 2007 and is headquartered in Midland, Texas.
About Forum Energy Technologies
Forum Energy Technologies, Inc. designs, manufactures, and distributes products serving the oil, natural gas, industrial, and renewable energy industries in the United States and internationally. It operates through three segments: Drilling & Downhole, Completions, and Production. The Drilling & Downhole segment designs, manufactures, and supplies products, and provides related services to the drilling, well construction, artificial lift, and subsea energy construction and services markets, including applications in oil and natural gas, renewable energy, defense, and communications. This segment offers drilling technologies consisting of capital equipment and a line of products consumed in the drilling process; well construction casing and cementing equipment, and products for artificial lift equipment and cables; and subsea remotely operated vehicles and trenchers, submarine rescue vehicles, specialty components and tools, and technical services. The Completions segment offers hydraulic fracturing pumps, cooling systems, high-pressure flexible hoses, and flow iron for pressure pumping markets; wireline cable and pressure control equipment for well completion and intervention service markets; and coiled tubing strings and coiled line pipe and related services. The Production segment designs, manufactures, and supplies products, and provides related equipment and services for production and infrastructure markets. This segment offers engineered process systems, production equipment, specialty separation equipment, and various industrial valves for oil and natural gas customers, power generation, renewable energy, and other general industrial applications. The company was formerly known as Forum Oilfield Technologies, Inc. and changed its name to Forum Energy Technologies, Inc. in August 2010. Forum Energy Technologies, Inc. was incorporated in 2005 and is headquartered in Houston, Texas.
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