Analyzing Oceaneering International (OII) and Its Competitors

Oceaneering International (NYSE: OII) is one of 56 publicly-traded companies in the “Oil Related Services and Equipment” industry, but how does it contrast to its peers? We will compare Oceaneering International to similar businesses based on the strength of its dividends, analyst recommendations, institutional ownership, valuation, risk, profitability and earnings.

Dividends

Oceaneering International pays an annual dividend of $0.60 per share and has a dividend yield of 2.3%. Oceaneering International pays out -206.9% of its earnings in the form of a dividend. As a group, “Oil Related Services and Equipment” companies pay a dividend yield of 2.8% and pay out -46.3% of their earnings in the form of a dividend.

Volatility and Risk

Oceaneering International has a beta of 1.67, indicating that its stock price is 67% more volatile than the S&P 500. Comparatively, Oceaneering International’s peers have a beta of 1.57, indicating that their average stock price is 57% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for Oceaneering International and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oceaneering International 3 7 6 0 2.19
Oceaneering International Competitors 500 2211 2924 125 2.46

Oceaneering International presently has a consensus price target of $28.55, indicating a potential upside of 10.73%. As a group, “Oil Related Services and Equipment” companies have a potential upside of 30.60%. Given Oceaneering International’s peers stronger consensus rating and higher possible upside, analysts plainly believe Oceaneering International has less favorable growth aspects than its peers.

Insider and Institutional Ownership

99.7% of Oceaneering International shares are held by institutional investors. Comparatively, 65.8% of shares of all “Oil Related Services and Equipment” companies are held by institutional investors. 0.9% of Oceaneering International shares are held by insiders. Comparatively, 11.9% of shares of all “Oil Related Services and Equipment” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Oceaneering International and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Oceaneering International -1.41% 1.14% 0.55%
Oceaneering International Competitors -18.49% -17.11% -6.01%

Valuation and Earnings

This table compares Oceaneering International and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Oceaneering International $2.00 billion $236.08 million -88.90
Oceaneering International Competitors $2.04 billion $274.32 million -38.54

Oceaneering International’s peers have higher revenue and earnings than Oceaneering International. Oceaneering International is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Oceaneering International peers beat Oceaneering International on 8 of the 15 factors compared.

About Oceaneering International

Oceaneering International, Inc. is an oilfield provider of engineered services and products, primarily to the offshore oil and gas industry, with a focus on deepwater applications. The Company’s business segments are contained within two businesses: services and products provided to the oil and gas industry (Oilfield) and all other services and products (Advanced Technologies). Its four business segments within the Oilfield business are Remotely Operated Vehicles (ROVs), Subsea Products, Subsea Projects and Asset Integrity. The services and products it provides to the oil and gas industry include remotely operated vehicles, specialty subsea hardware, engineering and project management, subsea intervention services, including manned diving, survey and positioning services and asset integrity and nondestructive testing services. The Company serves the defense, aerospace and commercial theme park industries.

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