McDermott International (NYSE: MDR) and Chart Industries (NASDAQ:GTLS) are both small-cap oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, valuation, earnings, profitability and risk.

Volatility and Risk

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McDermott International has a beta of 1.86, indicating that its share price is 86% more volatile than the S&P 500. Comparatively, Chart Industries has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500.

Valuation & Earnings

This table compares McDermott International and Chart Industries’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
McDermott International $2.98 billion 0.60 $178.54 million $0.64 9.81
Chart Industries $988.80 million 1.89 $28.00 million $0.96 62.76

McDermott International has higher revenue and earnings than Chart Industries. McDermott International is trading at a lower price-to-earnings ratio than Chart Industries, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for McDermott International and Chart Industries, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
McDermott International 1 4 5 0 2.40
Chart Industries 0 2 5 0 2.71

McDermott International currently has a consensus price target of $8.77, indicating a potential upside of 39.60%. Chart Industries has a consensus price target of $53.20, indicating a potential downside of 11.70%. Given McDermott International’s higher possible upside, analysts plainly believe McDermott International is more favorable than Chart Industries.

Insider and Institutional Ownership

97.7% of McDermott International shares are owned by institutional investors. Comparatively, 94.8% of Chart Industries shares are owned by institutional investors. 1.3% of McDermott International shares are owned by insiders. Comparatively, 2.1% of Chart Industries shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares McDermott International and Chart Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
McDermott International 5.98% 10.68% 5.51%
Chart Industries 2.84% 4.44% 2.23%

Summary

McDermott International beats Chart Industries on 8 of the 13 factors compared between the two stocks.

McDermott International Company Profile

McDermott International, Inc. is a provider of integrated engineering, procurement, construction and installation (EPCI), front-end engineering and design (FEED) and module fabrication services for upstream field developments across the world. The Company delivers fixed and floating production facilities, pipeline installations and subsea systems from concept to commissioning for offshore and subsea oil and gas projects. It operates through three segments: the Americas, Europe and Africa (AEA), the Middle East (MEA) and Asia (ASA). As of December 31, 2016, operated in approximately 20 countries across the Americas, Europe, Africa, the Middle East, Asia and Australia, its integrated resources include a diversified fleet of marine vessels, fabrication facilities and engineering offices. It support its activities with project management and procurement services, while utilizing its fully integrated capabilities in both shallow water and deepwater construction.

Chart Industries Company Profile

Chart Industries, Inc. manufactures and sells engineered equipment, packaged solutions, and value-add services for the industrial gas, energy, and biomedical industries worldwide. It operates in three segments: Energy & Chemicals (E&C), Distribution & Storage (D&S), and BioMedical. The E&C segment primarily provides brazed aluminum heat exchangers, Core-in-Kettle heat exchangers, air cooled heat exchangers, cold boxes, and process systems, as well as axial cooling fans for power, heating, ventilation, air conditioning, and refining end user applications. The D&S segment designs, manufactures, installs, services, and maintains bulk and packaged gas cryogenic solutions for the storage, distribution, vaporization, and application of industrial gases; and offer cryogenic components, including vacuum insulated pipes, engineered bulk gas installations, specialty liquid nitrogen, end-use equipment, and cryogenic flow meters. This segment also supplies cryogenic trailers, ISO containers, railcars, bulk storage tanks, fuel stations, loading facilities, and regasification equipment for delivering LNG into virtual pipeline applications; and large vacuum insulated storage tanks as equipment for purchasers of standard liquefaction plants. The BioMedical segment offers respiratory oxygen product line that comprises medical respiratory products, including liquid oxygen systems, as well as stationary, transportable, and portable oxygen concentrators primarily used for the in-home supplemental oxygen treatment of patients with chronic obstructive pulmonary diseases, such as bronchitis, emphysema, and asthma. This segment also provides vacuum insulated containment vessels for storing biological materials; and on-site generation products that consist of self-contained and standard generators, and packaged systems for industrial and medical oxygen and nitrogen generating systems. The company was incorporated in 1992 and is headquartered in Ball Ground, Georgia.

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