Gulf Island Fabrication (NASDAQ: GIFI) and Ranger Energy Services (NYSE:RNGR) are both small-cap energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, profitability, risk, dividends, earnings and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and price targets for Gulf Island Fabrication and Ranger Energy Services, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gulf Island Fabrication 0 0 0 0 N/A
Ranger Energy Services 0 3 5 0 2.63

Ranger Energy Services has a consensus target price of $17.25, suggesting a potential upside of 86.49%. Given Ranger Energy Services’ higher possible upside, analysts plainly believe Ranger Energy Services is more favorable than Gulf Island Fabrication.

Dividends

Gulf Island Fabrication pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. Ranger Energy Services does not pay a dividend. Gulf Island Fabrication pays out -2.5% of its earnings in the form of a dividend.

Insider and Institutional Ownership

64.2% of Gulf Island Fabrication shares are owned by institutional investors. Comparatively, 12.1% of Ranger Energy Services shares are owned by institutional investors. 3.4% of Gulf Island Fabrication shares are owned by 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.

Profitability

This table compares Gulf Island Fabrication and Ranger Energy Services’ 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%
Ranger Energy Services -14.29% -14.10% -10.47%

Earnings and Valuation

This table compares Gulf Island Fabrication and Ranger Energy Services’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Gulf Island Fabrication $286.33 million 0.67 $3.51 million ($1.62) -7.93
Ranger Energy Services $52.80 million 2.68 -$5.00 million N/A N/A

Gulf Island Fabrication has higher revenue and earnings than Ranger Energy Services.

Summary

Gulf Island Fabrication beats Ranger Energy Services on 9 of the 12 factors compared between the two stocks.

About Gulf Island Fabrication

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.

About Ranger Energy Services

Ranger Energy Services, Inc. is an independent provider of high-specification (high-spec) well service rigs and associated services in the United States. The Company focuses on unconventional horizontal well completion and production operations. The Company operates through Well Services and Processing Solutions segment. Well Services segment provides high-spec well service rigs and complementary equipment and services in the United States, with a focus on unconventional horizontal well completion, workover and maintenance operations. Processing Solutions segment engages in the rental, installation, commissioning, start-up, operation and maintenance of MRUs, NGL stabilizer units, NGL storage units and related equipment. The Company also offers full transportation, turn-key mobilization services, installation and ongoing operation services in the field. The Company’s turn-key mobilization services include in-bound transportation and site offloading.

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