Head to Head Comparison: TechnipFMC (NYSE:FTI) and ProPetro (NYSE:PUMP)

TechnipFMC (NYSE:FTI) and ProPetro (NYSE:PUMP) are both energy companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, risk, earnings and valuation.

Earnings & Valuation

This table compares TechnipFMC and ProPetro”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TechnipFMC	$9.93 billion	2.68	$963.90 million	$2.62	25.48
ProPetro	$1.27 billion	1.43	$820,000.00	($0.11)	-134.32

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

Institutional & Insider Ownership

96.6% of TechnipFMC shares are owned by institutional investors. Comparatively, 84.7% of ProPetro shares are owned by institutional investors. 1.4% of TechnipFMC shares are owned by insiders. Comparatively, 1.6% of ProPetro shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for TechnipFMC and ProPetro, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TechnipFMC	0	4	12	1	2.82
ProPetro	1	2	8	0	2.64

TechnipFMC currently has a consensus target price of $69.71, indicating a potential upside of 4.43%. ProPetro has a consensus target price of $16.63, indicating a potential upside of 12.52%. Given ProPetro’s higher possible upside, analysts plainly believe ProPetro is more favorable than TechnipFMC.

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, ProPetro has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500.

Profitability

This table compares TechnipFMC and ProPetro’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TechnipFMC	10.62%	34.06%	11.30%
ProPetro	-1.05%	-1.43%	-0.95%

Summary

TechnipFMC beats ProPetro on 12 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 ProPetro

ProPetro Holding Corp. operates as an integrated oilfield services company. The company provides hydraulic fracturing, wireline, cementing, and other complementary oilfield completion services to upstream oil and gas companies in the Permian Basin. ProPetro Holding Corp. was founded in 2007 and is headquartered in Midland, Texas.