Select Energy Services (NASDAQ: WTTR) and North American Energy Partners (NYSE:NOA) are both small-cap energy companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, earnings, institutional ownership, analyst recommendations, risk and profitability.
This table compares Select Energy Services and North American Energy Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Select Energy Services||-7.80%||-11.02%||-8.68%|
|North American Energy Partners||0.62%||0.97%||0.43%|
North American Energy Partners pays an annual dividend of $0.06 per share and has a dividend yield of 1.4%. Select Energy Services does not pay a dividend. North American Energy Partners pays out 600.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Select Energy Services has raised its dividend for 2 consecutive years.
This is a summary of recent recommendations for Select Energy Services and North American Energy Partners, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Select Energy Services||0||1||6||0||2.86|
|North American Energy Partners||0||0||3||0||3.00|
Select Energy Services currently has a consensus price target of $19.29, indicating a potential upside of 14.25%. North American Energy Partners has a consensus price target of $9.00, indicating a potential upside of 111.76%. Given North American Energy Partners’ stronger consensus rating and higher possible upside, analysts plainly believe North American Energy Partners is more favorable than Select Energy Services.
Institutional & Insider Ownership
39.5% of North American Energy Partners shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Select Energy Services and North American Energy Partners’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Select Energy Services||$395.02 million||1.30||$45.45 million||N/A||N/A|
|North American Energy Partners||$200.46 million||0.57||$40.90 million||$0.01||425.00|
Select Energy Services has higher revenue and earnings than North American Energy Partners.
North American Energy Partners beats Select Energy Services on 8 of the 14 factors compared between the two stocks.
Select Energy Services Company Profile
Select Energy Services, Inc. is a holding company. The Company is provider of total water solutions to the United States unconventional oil and gas industry. The Company is engaged in sourcing and transfer of water prior to its use in drilling and completion activities associated with hydraulic fracturing or fracking, which collectively referrd to as pre-frac water services. The Company provides its services to integrated and exploration and production (E&P) companies. Its operating segments include water solutions, accommodation and rentals, and wellsite completion and constructive services. The Company’s services include water sourcing, water transfer, water treatment, fluid handling, disposal solutions, accommodations, rentals, and wellsite construction. The Company also provides complementary water-related services that support oil and gas well completion and production activities including containment, monitoring, treatment, flowback, hauling and disposal.
North American Energy Partners Company Profile
North American Energy Partners Inc. provides a range of mining and heavy construction services to customers in the resource development and industrial construction sectors within Western Canada. The Company’s operating divisions include Heavy Construction and Mining; Industrial, and Tailings & Environmental Construction. Its Heavy Construction and Mining division is engaged in hard rock and oil sands mining, overburden removal, mine site development and mine reclamation. Its Industrial division offers services, which include site development, installation of underground utilities and piping, concrete foundations, facilities and infrastructure construction, and design/build services. The Tailings & Environmental Construction division performs a range of tailings, reclamation and environmental construction services, including oil sands tailings remediation; management of mine tailings; tailings dam and dyke construction, pipeline co-corridor construction, and tailings pipelines.
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