Gulf Island Fabrication (NASDAQ: GIFI) and Fairmount Santrol (NYSE:FMSA) are both small-cap oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.
Institutional and Insider Ownership
68.5% of Gulf Island Fabrication shares are owned by institutional investors. Comparatively, 73.2% of Fairmount Santrol shares are owned by institutional investors. 3.4% of Gulf Island Fabrication shares are owned by company insiders. Comparatively, 9.8% of Fairmount Santrol shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This is a breakdown of recent recommendations and price targets for Gulf Island Fabrication and Fairmount Santrol, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Gulf Island Fabrication||0||0||0||0||N/A|
Fairmount Santrol has a consensus target price of $5.95, indicating a potential upside of 14.37%. Given Fairmount Santrol’s higher probable upside, analysts clearly believe Fairmount Santrol is more favorable than Gulf Island Fabrication.
Risk & Volatility
Gulf Island Fabrication has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500. Comparatively, Fairmount Santrol has a beta of 2.05, indicating that its share price is 105% more volatile than the S&P 500.
Valuation and Earnings
This table compares Gulf Island Fabrication and Fairmount Santrol’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Gulf Island Fabrication||$286.33 million||0.63||$3.51 million||($1.62)||-7.47|
|Fairmount Santrol||$535.01 million||2.18||-$140.19 million||$0.06||86.67|
Gulf Island Fabrication has higher earnings, but lower revenue than Fairmount Santrol. Gulf Island Fabrication is trading at a lower price-to-earnings ratio than Fairmount Santrol, indicating that it is currently the more affordable of the two stocks.
This table compares Gulf Island Fabrication and Fairmount Santrol’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Gulf Island Fabrication||-12.71%||-9.45%||-7.70%|
Gulf Island Fabrication pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. Fairmount Santrol does not pay a dividend. Gulf Island Fabrication pays out -2.5% of its earnings in the form of a dividend.
Fairmount Santrol beats Gulf Island Fabrication on 12 of the 15 factors compared between the two stocks.
Gulf Island Fabrication Company Profile
Gulf Island Fabrication, Inc. (Gulf Island) is a holding company. The Company, along with its subsidiaries, is a fabricator of steel platforms and other specialized structures for customers in the offshore oil and gas industry. It also performs onshore and offshore construction and fabrication services for customers in the marine industry. Its primary activity is the fabrication of offshore drilling and production platforms and other steel structures for customers in the oil and gas and marine industries, including jackets and deck sections of fixed production platforms, hull, tendon, and/or deck sections of floating production platforms, piles, wellhead protectors. It conducts its operations through its subsidiaries, which include Gulf Island, L.L.C.; Gulf Marine Fabricators, L.P.; Gulf Island Marine Fabricators, L.L.C.; Gulf Island Shipyards, L.L.C.; Dolphin Services, L.L.C.; and Dolphin Steel Sales, L.L.C.
Fairmount Santrol Company Profile
Fairmount Santrol Holdings Inc. is a provider of sand-based proppant solutions. The Company operates through two segments: Proppant Solutions, and Industrial & Recreational (I&R) Products. Its Proppant Solutions segment provides sand-based proppants for use in hydraulic fracturing operations throughout the United States and Canada, Argentina, Mexico, China, northern Europe and the United Arab Emirates. Its I&R segment provides raw, coated, and custom blended sands to the foundry, building products, glass, turf and landscape, and filtration industries in North America. Its asset base includes approximately 800 million tons of proven and probable mineral reserves. As of March 2017, the Company had 10 sand processing facilities with 16.8 million tons of annual sand processing capacity. Its coating facilities include operations in Mexico, Denmark and China, through which it serves international oil and gas markets.
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