Head to Head Contrast: NexTier Oilfield Solutions (NYSE:NEX) vs. Propetro (NYSE:PUMP)

NexTier Oilfield Solutions (NYSE:NEX) and Propetro (NYSE:PUMP) are both small-cap oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, dividends, risk, institutional ownership, valuation, analyst recommendations and earnings.

Valuation and Earnings

This table compares NexTier Oilfield Solutions and Propetro’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NexTier Oilfield Solutions $2.14 billion 0.47 $59.33 million $0.92 5.21
Propetro $1.70 billion 0.51 $173.86 million $2.00 4.31

Propetro has lower revenue, but higher earnings than NexTier Oilfield Solutions. Propetro is trading at a lower price-to-earnings ratio than NexTier Oilfield Solutions, 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 NexTier Oilfield Solutions and Propetro, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NexTier Oilfield Solutions 0 0 2 0 3.00
Propetro 0 6 7 0 2.54

NexTier Oilfield Solutions presently has a consensus target price of $8.90, indicating a potential upside of 85.80%. Propetro has a consensus target price of $20.61, indicating a potential upside of 139.08%. Given Propetro’s higher probable upside, analysts clearly believe Propetro is more favorable than NexTier Oilfield Solutions.

Insider & Institutional Ownership

88.4% of NexTier Oilfield Solutions shares are owned by institutional investors. Comparatively, 89.0% of Propetro shares are owned by institutional investors. 0.5% of NexTier Oilfield Solutions shares are owned by insiders. Comparatively, 5.0% of Propetro shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares NexTier Oilfield Solutions and Propetro’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NexTier Oilfield Solutions -0.96% 2.73% 1.22%
Propetro 9.40% 21.83% 13.70%

Volatility & Risk

NexTier Oilfield Solutions has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500. Comparatively, Propetro has a beta of 1.83, indicating that its share price is 83% more volatile than the S&P 500.

Summary

Propetro beats NexTier Oilfield Solutions on 11 of the 14 factors compared between the two stocks.

NexTier Oilfield Solutions Company Profile

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.

Propetro Company Profile

ProPetro Holding Corp., an oilfield services company, provides pressure pumping and other related services. The company offers hydraulic fracturing services; and a suite of well completion and production services, including cementing, acidizing, coiled tubing, flowback, surface air drilling, and drilling services. It serves the upstream oil and gas companies engaged in the exploration and production of North American unconventional oil and natural gas resources in the Permian Basin. As of December 31, 2018, the company's fleet comprised 20 hydraulic fracturing units with 905,000 hydraulic horsepower. ProPetro Holding Corp. was founded in 2007 and is headquartered in Midland, Texas.

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