RigNet (NASDAQ: RNET) and Select Egy Svcs (NYSE:WTTR) are both small-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, valuation, earnings, institutional ownership and profitability.

Analyst Ratings

This is a summary of recent ratings for RigNet and Select Egy Svcs, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RigNet 0 2 1 0 2.33
Select Egy Svcs 1 1 6 0 2.63

RigNet currently has a consensus price target of $19.33, indicating a potential upside of 22.75%. Select Egy Svcs has a consensus price target of $19.00, indicating a potential upside of 10.02%. Given RigNet’s higher possible upside, analysts clearly believe RigNet is more favorable than Select Egy Svcs.

Valuation & Earnings

This table compares RigNet and Select Egy Svcs’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
RigNet $220.62 million 1.30 -$11.50 million ($0.79) -19.94
Select Egy Svcs $302.39 million 6.07 -$307.52 million $4.00 4.32

RigNet has higher earnings, but lower revenue than Select Egy Svcs. RigNet is trading at a lower price-to-earnings ratio than Select Egy Svcs, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

92.3% of RigNet shares are owned by institutional investors. Comparatively, 22.3% of Select Egy Svcs shares are owned by institutional investors. 1.2% of RigNet shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares RigNet and Select Egy Svcs’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RigNet -7.05% -11.13% -5.49%
Select Egy Svcs -6.18% -6.04% -4.91%

Summary

Select Egy Svcs beats RigNet on 8 of the 12 factors compared between the two stocks.

RigNet Company Profile

RigNet, Inc. (RigNet) provides customized systems and solutions serving customers with data networking and operational requirements. The Company provides voice and data network, video conferencing and monitoring, crew welfare, asset and weather monitoring, and real-time data services. It operates through two segments: Managed Services, and Systems Integration and Automation (SI&A). The Managed Services segment provides remote communications services for offshore and onshore drilling rigs and production facilities, as well as, support vessels and other remote sites. The SI&A segment provides customized solutions for customer telecommunications systems. As of December 31, 2016, the Company provided remote communications and collaborative services to approximately 500 customers reaching approximately 900 remote sites located in approximately 50 countries on six continents. It provides managed remote communications, engineered telecommunications solutions and applications.

Select Egy Svcs Company Profile

Select Energy Services, Inc. is a holding company. The Company is provider of total water solutions to the United States unconventional oil and gas industry. The Company is engaged in sourcing and transfer of water prior to its use in drilling and completion activities associated with hydraulic fracturing or fracking, which collectively referrd to as pre-frac water services. The Company provides its services to integrated and exploration and production (E&P) companies. Its operating segments include water solutions, accommodation and rentals, and wellsite completion and constructive services. The Company’s services include water sourcing, water transfer, water treatment, fluid handling, disposal solutions, accommodations, rentals, and wellsite construction. The Company also provides complementary water-related services that support oil and gas well completion and production activities including containment, monitoring, treatment, flowback, hauling and disposal.

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