Oceaneering International (NYSE:OII) versus NexTier Oilfield Solutions (NYSE:NEX) Head-To-Head Analysis

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

Profitability

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

Net Margins Return on Equity Return on Assets
Oceaneering International -33.06% -5.05% -2.06%
NexTier Oilfield Solutions -7.70% -3.63% -1.72%

Risk & Volatility

Oceaneering International has a beta of 3.26, indicating that its share price is 226% 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.

Institutional & Insider Ownership

97.4% of Oceaneering International shares are held by institutional investors. Comparatively, 95.0% of NexTier Oilfield Solutions shares are held by institutional investors. 1.8% of Oceaneering International shares are held by company insiders. Comparatively, 2.9% of NexTier Oilfield Solutions shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Oceaneering International and NexTier Oilfield Solutions’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Oceaneering International $2.05 billion 0.26 -$348.44 million ($0.82) -6.61
NexTier Oilfield Solutions $1.82 billion 0.35 -$106.16 million ($0.23) -13.00

NexTier Oilfield Solutions has lower revenue, but higher earnings than Oceaneering International. NexTier Oilfield Solutions is trading at a lower price-to-earnings ratio than Oceaneering International, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Oceaneering International and NexTier Oilfield Solutions, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oceaneering International 1 7 3 0 2.18
NexTier Oilfield Solutions 0 5 7 0 2.58

Oceaneering International currently has a consensus price target of $12.43, suggesting a potential upside of 129.34%. NexTier Oilfield Solutions has a consensus price target of $3.46, suggesting a potential upside of 15.59%. Given Oceaneering International’s higher probable upside, equities analysts clearly believe Oceaneering International is more favorable than NexTier Oilfield Solutions.

Summary

NexTier Oilfield Solutions beats Oceaneering International on 10 of the 14 factors compared between the two stocks.

About Oceaneering International

Oceaneering International, Inc. provides engineered services and products to the offshore oil and gas industry, as well as to defense, aerospace, and commercial theme park industries worldwide. The company's Remotely Operated Vehicles (ROVs) segment offers submersible vehicles for drill support, vessel-based inspection, maintenance and repair, installation and construction support, pipeline inspection and surveys, and subsea production facility operation and maintenance services. As of December 31, 2018, this segment owned 275 work-class ROVs. The company's Subsea Products segment constructs various specialty subsea hardware products, including subsea umbilicals utilizing steel tubes, thermoplastic hoses, and termination assemblies; tooling, ROV tooling, and subsea work packages; production control equipment; installation and workover control systems; clamp connectors; pipeline connector and repair systems; subsea and topside control valves; and subsea chemical injection valves, as well as offers riserless light well intervention services. Its Subsea Projects segment performs subsea oilfield hardware installation and inspection, maintenance, and repair services; serves shallow water projects; and performs subsea intervention and hardware installation services, such as subsea well tie-backs, pipeline/flow line tie-ins and repairs, pipeline crossing, and umbilical and other subsea equipment installations, and subsea intervention services. The company's Asset Integrity segment offers asset integrity services for the safety of customers' facilities onshore and offshore; third-party inspections to customers in the oil and gas, petrochemical, and power generation industries; and first-pass integrity evaluation and assessment, and nondestructive testing services. Its Advanced Technologies segment provides project management, engineering services, and equipment for applications in non-energy industries. The company was founded in 1964 and 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.

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