Analyzing RPC (RES) & Solaris Oilfield Infrastructure (SOI)
RPC (NYSE: RES) and Solaris Oilfield Infrastructure (NYSE:SOI) are both energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, dividends, risk and earnings.
RPC pays an annual dividend of $0.28 per share and has a dividend yield of 1.2%. Solaris Oilfield Infrastructure does not pay a dividend. RPC pays out 73.7% of its earnings in the form of a dividend. Solaris Oilfield Infrastructure has raised its dividend for 5 consecutive years.
This is a breakdown of current ratings and price targets for RPC and Solaris Oilfield Infrastructure, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Solaris Oilfield Infrastructure||0||1||12||0||2.92|
RPC presently has a consensus target price of $25.09, suggesting a potential upside of 3.14%. Solaris Oilfield Infrastructure has a consensus target price of $19.23, suggesting a potential downside of 7.56%. Given RPC’s higher probable upside, equities research analysts clearly believe RPC is more favorable than Solaris Oilfield Infrastructure.
Valuation and Earnings
This table compares RPC and Solaris Oilfield Infrastructure’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|RPC||$728.97 million||7.23||-$141.24 million||$0.38||64.03|
|Solaris Oilfield Infrastructure||$18.15 million||50.06||$2.80 million||N/A||N/A|
Solaris Oilfield Infrastructure has lower revenue, but higher earnings than RPC.
Insider and Institutional Ownership
38.1% of RPC shares are held by institutional investors. Comparatively, 56.4% of Solaris Oilfield Infrastructure shares are held by institutional investors. 73.5% of RPC shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares RPC and Solaris Oilfield Infrastructure’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Solaris Oilfield Infrastructure||18.84%||10.16%||9.23%|
Solaris Oilfield Infrastructure beats RPC on 9 of the 14 factors compared between the two stocks.
RPC Company Profile
RPC, Inc. (RPC) is a holding company for several oilfield services companies. The Company provides a range of specialized oilfield services and equipment primarily to independent oil and gas companies engaged in the exploration, production and development of oil and gas properties throughout the United States, including the southwest, mid-continent, Gulf of Mexico, Rocky Mountain and Appalachian regions, and in selected international markets. The Company’s segments are Technical Services and Support Services. The Technical Services segment consists primarily of pressure pumping, downhole tools, coiled tubing, snubbing, nitrogen, well control, wireline and fishing. Its Support Services include all of the services that provide equipment for customers’ use on the well site without RPC personnel and services that are provided in support of customer operations off the well site, such as classroom and computer training, and other consulting services.
Solaris Oilfield Infrastructure Company Profile
Solaris Oilfield Infrastructure, Inc. manufactures and provides its mobile proppant management systems that unload, store and deliver proppant at oil and natural gas well sites. The Company offers its services to oil and natural gas exploration and production (E&P) companies, as well as oilfield service companies. Its mobile proppant system is designed to address the challenges associated with transferring large quantities of proppant to the well site, including the cost and management of last mile logistics. Its systems provide 2.5 million pounds of proppant storage capacity. The Company manufactures its systems at its facility in Early, Texas, The Company’s system provides Streamlined last mile logistics and Improved execution to meet completion designs. Its systems provide triple the storage capacity, such as trailer-mounted, hydraulically powered storage bins. Its integrated PropView system delivers real-time proppant inventory and consumption levels.
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