Head-To-Head Review: Element Solutions (NYSE:ESI) and Flotek Industries (FTK)

Flotek Industries (NYSE:FTK) and Element Solutions (NYSE:ESI) are both oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, dividends, valuation and risk.

Risk and Volatility

Flotek Industries has a beta of 3.19, indicating that its stock price is 219% more volatile than the S&P 500. Comparatively, Element Solutions has a beta of 2.32, indicating that its stock price is 132% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Flotek Industries and Element Solutions, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Flotek Industries 0 1 0 0 2.00
Element Solutions 0 2 0 0 2.00

Element Solutions has a consensus target price of $9.75, suggesting a potential downside of 13.33%. Given Element Solutions’ higher possible upside, analysts clearly believe Element Solutions is more favorable than Flotek Industries.

Earnings and Valuation

This table compares Flotek Industries and Element Solutions’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Flotek Industries $177.77 million 1.07 -$70.34 million ($0.58) -5.71
Element Solutions $1.96 billion 1.45 -$324.40 million $0.14 80.36

Flotek Industries has higher earnings, but lower revenue than Element Solutions. Flotek Industries is trading at a lower price-to-earnings ratio than Element Solutions, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Flotek Industries and Element Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Flotek Industries -30.06% -13.21% -9.43%
Element Solutions -10.98% 6.60% 1.66%

Insider & Institutional Ownership

61.5% of Flotek Industries shares are owned by institutional investors. 4.9% of Flotek Industries shares are owned by company insiders. Comparatively, 3.8% of Element Solutions shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Element Solutions beats Flotek Industries on 8 of the 12 factors compared between the two stocks.

About Flotek Industries

Flotek Industries, Inc. provides chemistry and services to the oil and gas industries in then United States and internationally. The company designs, develops, manufactures, packs, markets, distributes, and delivers reservoir-centric fluid systems, including specialty and conventional chemistries for use in oil and gas well drilling, cementing, completion, remediation, and stimulation activities, as well as use in enhanced and improved oil recovery markets under the Complex nano-Fluid, Pressure reducing Fluids, and MicroSolv brand names. It is also involved in the construction management of automated material handling facilities; and management of loading facilities and blending operations for oilfield service companies. The company serves integrated oil and natural gas, oilfield service, independent oil and natural gas, pressure pumping service, international supply chain management, and national and state-owned oil companies. It sells its products directly through its sales force and contractual agency arrangements, as well as through third party agents. Flotek Industries, Inc. is headquartered in Houston, Texas.

About Element Solutions

Element Solutions Inc produces and sells specialty chemical products worldwide. It offers a range of specialty chemicals, such as surface and coating materials, functional conversion coatings, electronic assembly materials, water-based hydraulic control fluids, and photopolymers. The company was formerly known as Platform Specialty Products Corporation and changed its name to Element Solutions Inc in January 2019. Element Solutions Inc was founded in 1922 and is headquartered in West Palm Beach, Florida.

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