Eco-Stim Energy Solutions (NASDAQ: ESES) and Forum Energy Technologies (NYSE:FET) are both small-cap oils/energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, risk, valuation, profitability, dividends, analyst recommendations and institutional ownership.

Earnings & Valuation

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This table compares Eco-Stim Energy Solutions and Forum Energy Technologies’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Eco-Stim Energy Solutions $44.02 million 2.03 -$26.95 million ($0.87) -1.38
Forum Energy Technologies $818.60 million 1.64 -$59.40 million ($0.65) -19.08

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

Profitability

This table compares Eco-Stim Energy Solutions and Forum Energy Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Eco-Stim Energy Solutions -61.22% -40.28% -23.93%
Forum Energy Technologies -6.99% -2.98% -1.95%

Insider & Institutional Ownership

84.4% of Eco-Stim Energy Solutions shares are owned by institutional investors. Comparatively, 94.2% of Forum Energy Technologies shares are owned by institutional investors. 11.1% of Eco-Stim Energy Solutions 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 hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Eco-Stim Energy Solutions has a beta of 2.08, suggesting that its stock price is 108% more volatile than the S&P 500. Comparatively, Forum Energy Technologies has a beta of 1.96, suggesting that its stock price is 96% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Eco-Stim Energy Solutions and Forum Energy Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eco-Stim Energy Solutions 0 0 5 0 3.00
Forum Energy Technologies 0 12 3 0 2.20

Eco-Stim Energy Solutions presently has a consensus price target of $2.36, suggesting a potential upside of 96.67%. Forum Energy Technologies has a consensus price target of $15.77, suggesting a potential upside of 27.17%. Given Eco-Stim Energy Solutions’ stronger consensus rating and higher probable upside, research analysts clearly believe Eco-Stim Energy Solutions is more favorable than Forum Energy Technologies.

Summary

Forum Energy Technologies beats Eco-Stim Energy Solutions on 7 of the 13 factors compared between the two stocks.

About Eco-Stim Energy Solutions

Eco-Stim Energy Solutions, Inc. is an oilfield services company. The Company provides well stimulation, coiled tubing and field management services to the upstream oil and gas industry. The Company focuses on the active shale and unconventional oil and natural gas basins outside the United States and it has commenced operations in Argentina. The Company operates well stimulation fleets, coiled tubing units and other downhole completion equipment, as well as provides sweet spot analysis in shale resource basins using geophysical predictive modeling combined with real-time feedback from down-hole diagnostic tools. The Company offers a pumping fleet, including well-stimulation pumps, nitrogen pumping units and cranes, in both trailer-mounted and skid-mounted configurations. It provides a range of pressure-pumping services, including work-over pumping, well injection and wireline pump downs.

About Forum Energy Technologies

Forum Energy Technologies, Inc. designs, manufactures, and distributes products to the oil and natural gas industry in the United States and internationally. The company operates in three segments: Drilling & Subsea, Completions, and Production & Infrastructure. The Drilling & Subsea segment designs and manufactures products, and provides related services to the drilling, energy subsea construction and service markets, and other markets, such as alternative energy, defense, and communications. This segment offers drilling technologies consisting of capital equipment and a line of products consumed in the drilling; and subsea technologies, including robotic vehicles and other capital equipment, specialty components and tools, complementary subsea technical services and rental items, and products used in pipeline infrastructure. The Completions segment provides products and related services to the well construction, completion, stimulation, and intervention markets. This segment offers downhole technologies comprising cementing and casing tools, completion products, and a range of downhole cable protection solutions; and stimulation and intervention technologies, including pumps and well stimulation consumable products, and related recertification and refurbishment services. The Production & Infrastructure segment designs, manufactures, and supplies products, and provides related equipment and services to the production and infrastructure markets. This segment supplies production equipment, including well site production and process equipment; and a range of industrial and process valves. The company was formerly known as Forum Oilfield Technologies, Inc. and changed its name to Forum Energy Technologies, Inc. in August 2010. Forum Energy Technologies, Inc. was incorporated in 2005 and is headquartered in Houston, Texas.

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