Head-To-Head Contrast: DMC Global (NASDAQ:BOOM) vs. WBI (NYSE:WBI)

WBI (NYSE:WBI) and DMC Global (NASDAQ:BOOM) are both energy companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, profitability, valuation, dividends and risk.

Dividends

WBI pays an annual dividend of $0.20 per share and has a dividend yield of 0.6%. DMC Global pays an annual dividend of $0.50 per share and has a dividend yield of 8.0%. WBI pays out 250.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. DMC Global pays out -53.8% of its earnings in the form of a dividend. DMC Global is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares WBI and DMC Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WBI	0.54%	0.85%	0.41%
DMC Global	-3.37%	-6.84%	-2.57%

Valuation & Earnings

This table compares WBI and DMC Global”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WBI	$750.88 million	5.25	$11.89 million	$0.08	399.07
DMC Global	$587.61 million	0.22	-$13.45 million	($0.93)	-6.69

WBI has higher revenue and earnings than DMC Global. DMC Global is trading at a lower price-to-earnings ratio than WBI, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

77.6% of DMC Global shares are owned by institutional investors. 50.6% of WBI shares are owned by company insiders. Comparatively, 7.1% of DMC Global shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for WBI and DMC Global, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WBI	0	2	4	1	2.86
DMC Global	1	2	1	0	2.00

WBI currently has a consensus target price of $36.71, suggesting a potential upside of 15.00%. DMC Global has a consensus target price of $9.00, suggesting a potential upside of 44.69%. Given DMC Global’s higher possible upside, analysts clearly believe DMC Global is more favorable than WBI.

Summary

WBI beats DMC Global on 12 of the 16 factors compared between the two stocks.

About WBI

WaterBridge Infrastructure LLC is an integrated, pure-play water infrastructure company. WaterBridge Infrastructure LLC is based in HOUSTON.

About DMC Global

DMC Global Inc. provides a suite of engineered products and various solutions for the construction, energy, industrial processing, and transportation markets worldwide. The company operates through three segments: Arcadia, DynaEnergetics, and NobelClad. The Arcadia segment manufactures, assembles, and sells architectural building products, including exterior and interior framing systems, curtain walls, windows, doors, and interior partitions; architectural components, architectural framing systems, entrance systems, and sun control products; sliding and glazing systems; and thermally broken steel, aluminum windows and doors, and wood doors and windows. It sells its products through a national in-house sales force for buildings, such as office towers, airports, hotels, education and athletic facilities, health care locations, government buildings, retail centers, mixed use, and multi-family residential buildings. The DynaEnergetics segment designs, manufactures, markets, and sells perforating systems, including initiation systems, shaped charges, detonating cords, gun hardware, and control panels; and perforating systems and associated hardware for the oil and gas industry. It sells its products through direct selling, distributors, and independent sales representatives. The NobelClad segment produces and sells explosion-welded clad metal plates for use in the construction of heavy, corrosion resistant pressure vessels, and heat exchangers for oil and gas, chemical and petrochemical, alternative energy, hydrometallurgy, aluminum production, shipbuilding, rail car manufacturing, power generation, and industrial refrigeration industries. It sells its products through direct sales personnel, program managers, and independent sales representatives. The company was formerly known as Dynamic Materials Corporation and changed its name to DMC Global Inc. in November 2016. DMC Global Inc. was founded in 1965 and is headquartered in Broomfield, Colorado.