Cypress Energy Partners (NYSE:CELP) vs. KLX Energy Services (KLXE) Financial Analysis

Cypress Energy Partners (NYSE:CELP) and KLX Energy Services (NASDAQ:KLXE) are both small-cap oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, institutional ownership, valuation, earnings and profitability.

Profitability

This table compares Cypress Energy Partners and KLX Energy Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cypress Energy Partners 3.62% 117.70% 7.42%
KLX Energy Services N/A N/A N/A

Insider & Institutional Ownership

1.2% of Cypress Energy Partners shares are held by institutional investors. Comparatively, 89.3% of KLX Energy Services shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and price targets for Cypress Energy Partners and KLX Energy Services, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cypress Energy Partners 0 1 0 0 2.00
KLX Energy Services 0 0 3 0 3.00

Cypress Energy Partners presently has a consensus target price of $8.00, suggesting a potential upside of 10.80%. KLX Energy Services has a consensus target price of $30.00, suggesting a potential upside of 16.37%. Given KLX Energy Services’ stronger consensus rating and higher probable upside, analysts plainly believe KLX Energy Services is more favorable than Cypress Energy Partners.

Dividends

Cypress Energy Partners pays an annual dividend of $0.84 per share and has a dividend yield of 11.6%. KLX Energy Services does not pay a dividend. Cypress Energy Partners pays out 116.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation and Earnings

This table compares Cypress Energy Partners and KLX Energy Services’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cypress Energy Partners $314.96 million 0.28 $11.41 million $0.72 10.03
KLX Energy Services $495.30 million 1.20 $14.40 million $2.81 9.17

KLX Energy Services has higher revenue and earnings than Cypress Energy Partners. KLX Energy Services is trading at a lower price-to-earnings ratio than Cypress Energy Partners, indicating that it is currently the more affordable of the two stocks.

Summary

KLX Energy Services beats Cypress Energy Partners on 9 of the 14 factors compared between the two stocks.

Cypress Energy Partners Company Profile

Cypress Energy Partners, L.P. provides pipeline inspection and integrity, and water and environmental services in North America. The company operates in three segments: Pipeline Inspection Services, Pipeline & Process Services, and Water and Environmental Services. The Pipeline Inspection Services segment offers independent inspection services for various facilities and equipment, such as transmission pipelines; oil and natural gas gathering systems; pump, compressor, measurement, and regulation stations; storage facilities and terminals; and gas distribution systems. The Pipeline & Process Services segment offers hydrostatic testing services, including filling, pressure testing, and dewatering; chemical cleaning services; and other related services. The Water and Environmental Services segment owns and operates nine Environmental Protection Agency Class II saltwater disposal (SWD) facilities in the Williston Basin region of North Dakota. This segment also offers flowback water management services by disposing flowback water produced from hydraulic fracturing operations during the completion of oil and natural gas wells; provides water management services by disposing naturally occurring water that is extracted during the oil and natural gas production process; separates residual oil from the saltwater stream and sells it to third-parties; and manages SWD facilities. The company serves oil and natural gas producers, pipeline owners and operators, public utility or local distribution companies, trucking companies, and third-party purchasers of residual oil. Cypress Energy Partners GP, LLC operates as the general partner of the company. The company was founded in 2012 and is headquartered in Tulsa, Oklahoma.

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.

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