Solaris Energy Infrastructure (NYSE:SEI) versus Helmerich & Payne (NYSE:HP) Financial Analysis

Helmerich & Payne (NYSE:HP) and Solaris Energy Infrastructure (NYSE:SEI) are both mid-cap energy companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, risk, dividends and profitability.

Risk & Volatility

Helmerich & Payne has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500. Comparatively, Solaris Energy Infrastructure has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500.

Profitability

This table compares Helmerich & Payne and Solaris Energy Infrastructure’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Helmerich & Payne	-3.43%	-2.35%	-0.99%
Solaris Energy Infrastructure	7.19%	13.26%	4.80%

Insider and Institutional Ownership

96.1% of Helmerich & Payne shares are owned by institutional investors. Comparatively, 67.4% of Solaris Energy Infrastructure shares are owned by institutional investors. 4.4% of Helmerich & Payne shares are owned by insiders. Comparatively, 20.2% of Solaris Energy Infrastructure shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

Helmerich & Payne pays an annual dividend of $1.00 per share and has a dividend yield of 2.6%. Solaris Energy Infrastructure pays an annual dividend of $0.48 per share and has a dividend yield of 0.7%. Helmerich & Payne pays out -70.9% of its earnings in the form of a dividend. Solaris Energy Infrastructure pays out 56.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Helmerich & Payne is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Helmerich & Payne and Solaris Energy Infrastructure”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Helmerich & Payne	$3.75 billion	1.03	-$163.70 million	($1.41)	-27.40
Solaris Energy Infrastructure	$622.21 million	8.76	$30.17 million	$0.85	83.79

Solaris Energy Infrastructure has lower revenue, but higher earnings than Helmerich & Payne. Helmerich & Payne is trading at a lower price-to-earnings ratio than Solaris Energy Infrastructure, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings for Helmerich & Payne and Solaris Energy Infrastructure, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Helmerich & Payne	2	4	5	0	2.27
Solaris Energy Infrastructure	0	2	10	0	2.83

Helmerich & Payne presently has a consensus price target of $43.10, indicating a potential upside of 11.54%. Solaris Energy Infrastructure has a consensus price target of $92.00, indicating a potential upside of 29.18%. Given Solaris Energy Infrastructure’s stronger consensus rating and higher probable upside, analysts clearly believe Solaris Energy Infrastructure is more favorable than Helmerich & Payne.

Summary

Solaris Energy Infrastructure beats Helmerich & Payne on 12 of the 16 factors compared between the two stocks.

About Helmerich & Payne

Founded in 1920, Helmerich & Payne, Inc. (H&P) (NYSE: HP) is committed to delivering industry leading levels of drilling productivity and reliability. H&P operates with the highest level of integrity, safety and innovation to deliver superior results for its customers and returns for shareholders. Through its subsidiaries, the Company designs, fabricates and operates high-performance drilling rigs in conventional and unconventional plays around the world. H&P also develops and implements advanced automation, directional drilling and survey management technologies. H&P’s fleet includes 299 land rigs in the U.S., 31 international land rigs and eight offshore platform rigs.

About Solaris Energy Infrastructure

Solaris Energy Infrastructure, Inc. is a holding company, which engages in the manufacture of patented mobile proppant management systems that unload, store, and deliver proppant to oil and natural gas well sites. Its products include Mobile Proppant and Mobile Chemical Management Systems, and Inventory Management Software. The firm’s services include field, last mile management, and transloading services. The company was founded by William A. Zartler in 2014 and is headquartered in Houston, TX.