Freestone Resources (OTCMKTS:FSNR) and NOW (NYSE:DNOW) are both small-cap oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, risk, dividends and institutional ownership.

Profitability

This table compares Freestone Resources and NOW’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Freestone Resources -110.66% N/A -81.83%
NOW 1.09% 2.43% 1.60%

Risk and Volatility

Freestone Resources has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500. Comparatively, NOW has a beta of 1.29, meaning that its stock price is 29% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Freestone Resources and NOW, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Freestone Resources 0 0 0 0 N/A
NOW 0 6 4 0 2.40

NOW has a consensus price target of $15.00, suggesting a potential upside of 11.28%. Given NOW’s higher possible upside, analysts clearly believe NOW is more favorable than Freestone Resources.

Earnings & Valuation

This table compares Freestone Resources and NOW’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Freestone Resources $1.16 million 2.63 -$1.13 million N/A N/A
NOW $2.65 billion 0.55 -$52.00 million ($0.27) -49.93

Freestone Resources has higher earnings, but lower revenue than NOW.

Summary

NOW beats Freestone Resources on 7 of the 9 factors compared between the two stocks.

About Freestone Resources

Freestone Resources, Inc., an oil and gas technology development company, engages in the development and marketing of technologies and solvents for various sectors in the oil and gas industry. The company offers Petrozene solvent that is primarily used to dissolve paraffin buildup and used for pipelines, oil storage tanks, oil sludge build up, de-emulsification, and well treatment, as well as used as a corrosion inhibitor and as a catalyst in opening up formations thereby aiding in oil production. It also provides specialized off-the-road (OTR) tire repair services; offers disposal services for OTR tires; sells used OTR tires; and recycles OTR tires. Freestone Resources, Inc. is based in Ennis, Texas.

About NOW

NOW Inc. distributes energy and industrial products in the United States, Canada, and internationally. It offers consumable maintenance, repair, and operating supplies; and pipes, valves, fittings, flanges, gaskets, fasteners, electrical products, instrumentations, artificial lift, pumping solutions, valve actuation and modular process, measurement and control equipment, process equipment, pumps, OEM parts, coatings, mill supplies, and safety supplies, as well as provides application systems, work processes, parts integration, optimization solutions, and after-sales support services. The company also provides supply chain and materials management solutions that include procurement, inventory and warehouse management, logistics, point of issue technology, project management, business process, and performance metrics reporting. It offers its products under the DistributionNOW and Wilson Export brand names. The company serves customers in the upstream, midstream, and downstream sectors of the energy industry, including drilling contractors, well servicing companies, independent and national oil and gas companies, midstream operators, and refineries, as well as petrochemical, chemical, utilities, and other downstream energy processors; and industrial and manufacturing companies. NOW Inc. was incorporated in 2013 and is headquartered in Houston, Texas.

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