Head to Head Comparison: Eco-Stim Energy Solutions (NASDAQ:ESES) versus Archrock (AROC)
Eco-Stim Energy Solutions (NASDAQ: ESES) and Archrock (NYSE:AROC) are both small-cap oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitabiliy, valuation, institutional ownership, earnings and dividends.
Risk & Volatility
Eco-Stim Energy Solutions has a beta of 2.1, meaning that its stock price is 110% more volatile than the S&P 500. Comparatively, Archrock has a beta of 3.49, meaning that its stock price is 249% more volatile than the S&P 500.
Archrock pays an annual dividend of $0.48 per share and has a dividend yield of 4.7%. Eco-Stim Energy Solutions does not pay a dividend.
This table compares Eco-Stim Energy Solutions and Archrock’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Eco-Stim Energy Solutions||-199.17%||-83.32%||-26.96%|
Valuation and Earnings
This table compares Eco-Stim Energy Solutions and Archrock’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Eco-Stim Energy Solutions||$9.08 million||2.61||-$9.33 million||($1.30)||-1.22|
|Archrock||$777.50 million||0.93||$284.77 million||N/A||N/A|
Archrock has higher revenue and earnings than Eco-Stim Energy Solutions.
Insider and Institutional Ownership
14.3% of Eco-Stim Energy Solutions shares are owned by institutional investors. Comparatively, 88.5% of Archrock shares are owned by institutional investors. 11.1% of Eco-Stim Energy Solutions shares are owned by company insiders. Comparatively, 2.5% of Archrock shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This is a summary of recent ratings for Eco-Stim Energy Solutions and Archrock, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Eco-Stim Energy Solutions||0||1||1||0||2.50|
Eco-Stim Energy Solutions presently has a consensus price target of $1.90, indicating a potential upside of 20.25%. Archrock has a consensus price target of $13.35, indicating a potential upside of 31.53%. Given Archrock’s higher probable upside, analysts clearly believe Archrock is more favorable than Eco-Stim Energy Solutions.
Archrock beats Eco-Stim Energy Solutions on 9 of the 13 factors compared between the two stocks.
Eco-Stim Energy Solutions Company Profile
Eco-Stim Energy Solutions, Inc. is an oilfield services company. The Company provides well stimulation, coiled tubing and field management services to the upstream oil and gas industry. The Company focuses on the active shale and unconventional oil and natural gas basins outside the United States and it has commenced operations in Argentina. The Company operates well stimulation fleets, coiled tubing units and other downhole completion equipment, as well as provides sweet spot analysis in shale resource basins using geophysical predictive modeling combined with real-time feedback from down-hole diagnostic tools. The Company offers a pumping fleet, including well-stimulation pumps, nitrogen pumping units and cranes, in both trailer-mounted and skid-mounted configurations. It provides a range of pressure-pumping services, including work-over pumping, well injection and wireline pump downs.
Archrock Company Profile
Archrock, Inc. is a natural gas contract operations services company. The Company also provides natural gas compression services to customers in the oil and natural gas industry throughout the United States and supplies aftermarket services to customers that own compression equipment in the United States. The Company operates through two segments: contract operations and aftermarket services. The contract operations segment primarily provides natural gas compression services to meet specific customer requirements. The Company provides contract operations services, including the personnel, equipment, tools, materials and supplies to meet its customers’ natural gas compression needs. The aftermarket services segment provides a range of services to support the compression needs of customers, from parts sales and normal maintenance services to full operation of a customer’s owned assets.
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