Financial Analysis: TechnipFMC (NYSE:FTI) versus Nine Energy Service (NYSE:NINE)

TechnipFMC (NYSE:FTI) and Nine Energy Service (NYSE:NINE) are both energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, earnings, profitability, analyst recommendations, institutional ownership and valuation.

Profitability

This table compares TechnipFMC and Nine Energy Service’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TechnipFMC	9.70%	31.14%	10.16%
Nine Energy Service	-7.17%	N/A	-11.52%

Earnings and Valuation

This table compares TechnipFMC and Nine Energy Service”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TechnipFMC	$9.93 billion	2.63	$963.90 million	$2.31	28.30
Nine Energy Service	$571.17 million	0.04	-$41.08 million	($1.00)	-0.59

TechnipFMC has higher revenue and earnings than Nine Energy Service. Nine Energy Service is trading at a lower price-to-earnings ratio than TechnipFMC, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

96.6% of TechnipFMC shares are held by institutional investors. Comparatively, 57.6% of Nine Energy Service shares are held by institutional investors. 1.8% of TechnipFMC shares are held by insiders. Comparatively, 4.1% of Nine Energy Service shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk and Volatility

TechnipFMC has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500. Comparatively, Nine Energy Service has a beta of 2.22, suggesting that its stock price is 122% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for TechnipFMC and Nine Energy Service, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TechnipFMC	0	4	12	1	2.82
Nine Energy Service	1	0	0	0	1.00

TechnipFMC presently has a consensus target price of $55.93, indicating a potential downside of 14.43%. Given TechnipFMC’s stronger consensus rating and higher probable upside, equities research analysts plainly believe TechnipFMC is more favorable than Nine Energy Service.

Summary

TechnipFMC beats Nine Energy Service on 13 of the 15 factors compared between the two stocks.

About TechnipFMC

TechnipFMC plc engages in the energy projects, technologies, and systems and services businesses in Europe, Central Asia, North America, Latin America, the Asia Pacific, Africa, the Middle East, and internationally. It operates through two segments: Subsea and Surface Technologies. The Subsea segment engages in the design, engineering, procurement, manufacturing, fabrication, installation, and life of field services for subsea systems, subsea field infrastructure, and subsea pipe systems used in oil and gas production and transportation. It provides subsea production and processing system; flexible pipe; subsea umbilicals, risers, and flowlines; vessels; robotics; well and asset services; and Subsea Studio for optimizing the development, execution, and operation of current and future subsea fields. The Surface Technologies segment designs, manufactures, and services products and systems used in land and shallow water exploration and production of crude oil and natural gas. This segment offers drilling; surface wellheads and production trees systems; iComplete, a pressure control system; fracturing tree and manifold systems; flexible pipes; safety and integrity systems, multiphase meter modules, in-line separation and processing systems, and standard pumps; well control and integrity systems; separation and processing systems; skid systems; and flow measurement and automation solutions. It also offers planning, testing and installation, commissioning, operations, replacement and upgrade, maintenance, storage, preservation, intervention, integrity, decommissioning, and abandonment; and supplies flowline products and services. TechnipFMC plc was founded in 1884 and is headquartered in Houston, Texas.

About Nine Energy Service

Nine Energy Service, Inc. operates as an onshore completion services provider that targets unconventional oil and gas resource development in North American basins and internationally. It offers cementing services, including blending high-grade cement and water with various solid and liquid additives to create a cement slurry that is pumped between the casing and the wellbore of the well. The company also provides open hole and cemented completion tool products, such as liner hangers and accessories, fracture isolation packers, frac sleeves, stage one prep tools, casing flotation tools, specialty open hole float equipment, disk subs, composite cement retainers, and centralizers that provide pinpoint frac sleeve system technologies. In addition, it offers wireline services consisting of plug-and-perf completions, which is a multistage well completion technique for cased-hole wells that consists of deploying perforating guns and isolation tools to a specified depth; and coiled tubing services, which perform wellbore intervention operations utilizing a continuous steel pipe that is transported to the wellsite wound on a large spool. The company was formerly known as NSC-Tripoint, Inc. and changed its name to Nine Energy Service, Inc. in October 2011. Nine Energy Service, Inc. was incorporated in 2011 and is headquartered in Houston, Texas.