Core Laboratories (NYSE: CLB) and Forum Energy Technologies (NYSE:FET) are both energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Institutional & Insider Ownership

98.7% of Forum Energy Technologies shares are owned by institutional investors. 1.0% of Core Laboratories shares are owned by company insiders. Comparatively, 32.8% of Forum Energy Technologies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Core Laboratories and Forum Energy Technologies’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Core Laboratories $594.74 million 7.48 $63.89 million $1.73 58.24
Forum Energy Technologies $587.60 million 2.61 -$81.97 million ($1.26) -11.27

Core Laboratories has higher revenue and earnings than Forum Energy Technologies. Forum Energy Technologies is trading at a lower price-to-earnings ratio than Core Laboratories, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations for Core Laboratories and Forum Energy Technologies, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Core Laboratories 1 6 6 0 2.38
Forum Energy Technologies 0 12 3 0 2.20

Core Laboratories presently has a consensus price target of $109.50, suggesting a potential upside of 8.68%. Forum Energy Technologies has a consensus price target of $18.36, suggesting a potential upside of 29.28%. Given Forum Energy Technologies’ higher probable upside, analysts clearly believe Forum Energy Technologies is more favorable than Core Laboratories.

Dividends

Core Laboratories pays an annual dividend of $2.20 per share and has a dividend yield of 2.2%. Forum Energy Technologies does not pay a dividend. Core Laboratories pays out 127.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Core Laboratories and Forum Energy Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Core Laboratories 12.06% 52.89% 13.98%
Forum Energy Technologies -16.85% -3.97% -2.63%

Risk and Volatility

Core Laboratories has a beta of 1.56, suggesting that its share price is 56% more volatile than the S&P 500. Comparatively, Forum Energy Technologies has a beta of 1.66, suggesting that its share price is 66% more volatile than the S&P 500.

Summary

Core Laboratories beats Forum Energy Technologies on 10 of the 15 factors compared between the two stocks.

About Core Laboratories

Core Laboratories N.V. provides reservoir description, production enhancement and reservoir management services to the oil and gas industry. The Company operates through three segments: Reservoir Description, Production Enhancement and Reservoir Management. The Reservoir Description segment encompasses the characterization of petroleum reservoir rock, fluid and gas samples. It provides analytical and field services to characterize properties of crude oil and petroleum products to the oil and gas industry. The Production Enhancement segment includes products and services relating to reservoir well completions, perforations, stimulations and production. It provides integrated diagnostic services to evaluate the effectiveness of well completions. The Reservoir Management segment combines and integrates information from reservoir description and production enhancement services to increase production and recovery of oil and gas from its clients’ reservoirs.

About Forum Energy Technologies

Forum Energy Technologies, Inc. is an oilfield products company. The Company designs, manufactures and distributes products, and engages in aftermarket services, parts supply and related services. The Company operates through three segments: Drilling & Subsea, Completions, and Production & Infrastructure. The Drilling & Subsea segment designs and manufactures products, and provides related services to the drilling and subsea construction markets. The Completions segment designs, manufactures and supplies products, and provide related services to the well construction, completion, stimulation and intervention markets. The Production & Infrastructure segment designs, manufactures and supplies products, and provides related equipment and services to production and infrastructure markets. Its product offering includes a mix of engineered capital products and replaced items that are used in the exploration, development, production and transportation of oil and natural gas.

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