KLX Energy Services (NASDAQ:KLXE) and Newpark Resources (NYSE:NR) are both small-cap oils/energy companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, earnings, valuation, profitability and analyst recommendations.
Insider & Institutional Ownership
89.0% of KLX Energy Services shares are held by institutional investors. Comparatively, 98.7% of Newpark Resources shares are held by institutional investors. 4.8% of Newpark Resources shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This is a breakdown of recent recommendations and price targets for KLX Energy Services and Newpark Resources, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|KLX Energy Services||0||0||3||0||3.00|
KLX Energy Services currently has a consensus target price of $30.00, indicating a potential upside of 3.52%. Newpark Resources has a consensus target price of $12.50, indicating a potential upside of 38.73%. Given Newpark Resources’ higher probable upside, analysts plainly believe Newpark Resources is more favorable than KLX Energy Services.
This table compares KLX Energy Services and Newpark Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|KLX Energy Services||N/A||N/A||N/A|
Valuation & Earnings
This table compares KLX Energy Services and Newpark Resources’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|KLX Energy Services||$495.30 million||1.35||$14.40 million||$2.81||10.31|
|Newpark Resources||$946.55 million||0.86||$32.28 million||$0.41||21.98|
Newpark Resources has higher revenue and earnings than KLX Energy Services. KLX Energy Services is trading at a lower price-to-earnings ratio than Newpark Resources, indicating that it is currently the more affordable of the two stocks.
Newpark Resources beats KLX Energy Services on 9 of the 12 factors compared between the two stocks.
KLX Energy Services Company Profile
KLX Energy Services Holdings, Inc. provides completion, intervention, and production services and products to the onshore oil and gas producing regions of the United States. It offers a range of technical services, and related tools and equipment to companies engaged in the exploration and development of North American onshore conventional and unconventional oil and natural gas reserves. The company was incorporated in 2018 and is headquartered in Wellington, Florida.
Newpark Resources Company Profile
Newpark Resources, Inc. provides products, rentals, and services primarily to the oil and natural gas exploration and production industry. It operates through two segments, Fluids Systems, and Mats and Integrated Services. The Fluids Systems segment offers drilling and completion fluids solutions, and technical services to customers in the North America, Europe, the Middle East, Africa, Latin America, and the Asia Pacific regions. The Mats and Integrated Services segment offers composite mat rental, construction, and related site services to customers in various markets, including oil and gas exploration and production, electrical transmission and distribution, pipeline, solar, petrochemical, and construction industries in the United States, Canada, Europe, and internationally. The company was founded in 1932 and is headquartered in The Woodlands, Texas.
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