Analyzing Emerge Energy Services (EMES) and Geospace Technologies Corporation (GEOS)
Emerge Energy Services (NYSE: EMES) and Geospace Technologies Corporation (NASDAQ:GEOS) are both small-cap oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.
This table compares Emerge Energy Services and Geospace Technologies Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Emerge Energy Services||-14.29%||-170.44%||-25.17%|
|Geospace Technologies Corporation||-75.19%||-21.79%||-20.93%|
Valuation and Earnings
This table compares Emerge Energy Services and Geospace Technologies Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Emerge Energy Services||$231.85 million||0.80||-$26.10 million||($1.14)||-5.40|
|Geospace Technologies Corporation||$66.35 million||3.00||-$32.47 million||($3.80)||-3.89|
Emerge Energy Services has higher revenue and earnings than Geospace Technologies Corporation. Emerge Energy Services is trading at a lower price-to-earnings ratio than Geospace Technologies Corporation, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
42.4% of Emerge Energy Services shares are held by institutional investors. Comparatively, 81.9% of Geospace Technologies Corporation shares are held by institutional investors. 3.5% of Geospace Technologies Corporation shares 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.
This is a breakdown of current ratings for Emerge Energy Services and Geospace Technologies Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Emerge Energy Services||0||2||4||0||2.67|
|Geospace Technologies Corporation||0||1||0||0||2.00|
Emerge Energy Services presently has a consensus target price of $20.80, indicating a potential upside of 237.66%. Given Emerge Energy Services’ stronger consensus rating and higher probable upside, equities analysts clearly believe Emerge Energy Services is more favorable than Geospace Technologies Corporation.
Risk & Volatility
Emerge Energy Services has a beta of 1.54, meaning that its stock price is 54% more volatile than the S&P 500. Comparatively, Geospace Technologies Corporation has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500.
Emerge Energy Services beats Geospace Technologies Corporation on 8 of the 13 factors compared between the two stocks.
Emerge Energy Services Company Profile
Emerge Energy Services LP owns, operates, acquires and develops a portfolio of energy service assets. The Company operates through Sand segment. The Company conducts its Sand operations through its subsidiary, Superior Silica Sands LLC (SSS). The Company’s Sand business mines, processes and distributes silica sand, an input for the hydraulic fracturing of oil and gas wells. As of December 31, 2016, its Wisconsin facilities consisted of three dry plants located in Arland, Barron and New Auburn, Wisconsin, with a total permitted capacity of 6.3 million finished tons per year, and five wet plants and mine complexes. As of December 31, 2016, its dry plant in Kosse, Texas, had a capacity of 600,000 tons per year that is supplied by a separate mine and wet plant that processes local Texas sand. As of December 31, 2016, the Company also had 14 transload facilities located throughout North America in the basins where it delivers its sand, as well as a fleet of 5,573 railcars.
Geospace Technologies Corporation Company Profile
Geospace Technologies Corporation designs and manufactures instruments and equipment used by the oil and gas industry to acquire seismic data in order to locate, characterize and monitor hydrocarbon producing reservoirs. The Company also designs and manufactures non-seismic products, including industrial products, offshore cables and imaging equipment. The Company operates through two segments: Seismic and Non-Seismic. The Company’s Seismic product segments include traditional exploration products, wireless exploration products and reservoir products. Its seismic product lines consist of land and marine nodal data acquisition systems, permanent land and seabed reservoir monitoring products and services, geophones and geophone strings, hydrophones, leader wire, connectors, telemetry cables, marine streamer retrieval and steering devices and various other products. The Company’s Non-Seismic product segments include imaging and industrial products.
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