Smart Sand and Oceaneering International, two players in the energy sector, each bring unique factors to the table which can affect their overall business robustness. To understand which company stands out as a better business prospect, we need to compare them on various business dynamics. These include factors such as analysts’ ratings, profitability metrics, dividend payouts, business risks, market valuation, earning potential, and the percentage of institutional and insider ownership.
Institutional investors and insiders own a significant percentage of shares in both Smart Sand and Oceaneering International. For Smart Sand, institutional investors control approximately 35.2% of the company’s shares. In contrast, Oceaneering International sees a larger fraction of its stakes, around 93.9%, controlled by institutional investors.
However, when we look at insider ownership, Smart Sand has the upper hand. Company insiders at Smart Sand hold approximately 32.3% shares, while Oceaneering International insiders own just 2.1% shares. Strong institutional ownership is usually a sign that large stakeholders like hedge funds, endowments, and money managers believe in a company’s long-term potential to exceed market performance.
In terms of market volatility and risk associated, the two companies show different trends. Smart Sand’s stock price has a beta value of 0.83, which indicates its stock price volatility is 17% less in comparison to S&P 500. On the other hand, Oceaneering International presents a higher beta value of 1.55, indicative of a 55% greater volatility than the S&P 500.
A comparison of valuation and earnings of these corporations reveals essential insights into their fiscal health and performance. These measures comprise gross revenue, price/sales ratio, net income, earnings per share (EPS), and price/earnings ratio. An examination of these factors pointedly suggests that Oceaneering International has higher revenue and earnings than Smart Sand.
Moreover, Oceaneering International’s price-to-earnings ratio is lower than that of Smart Sand. Therefore, Oceaneering International’s stocks are currently more affordable as compared to Smart Sand.
Another important criterion to consider is a company’s profitability, which can be evaluated using metrics like net margins, return on equity (ROE), and return on assets (ROA). In this category, Oceaneering International clearly performs better than Smart Sand. Oceaneering International shows a greater net margin, ROE, and ROA.
Looking at the analysts’ ratings gives another perspective. Based on MarketBeat’s recommendations and price targets, Oceaneering International is looked upon more favorably. With a target price of $28.25 and potential upside of 19.12%, it clearly outshines Smart Sand in analyst’s viewpoint.
In summary, Oceaneering International outperforms Smart Sand in twelve of the fourteen factors compared. However, each company holds its unique positioning in the sector.
Smart Sand, an integrated frac and industrial sand services company, is involved in excavation, processing, and sales of sands for hydraulic fracturing operations in the oil and gas industry within the United States. In addition, Smart Sand offers proppant logistics services and wellsite storage solutions using its SmartSystems products.
The company primarily targets clientele among oil and natural gas exploration and production organizations, oilfield service corporations, and industrial manufacturers.
Conversely, Oceaneering International offers engineered services, products, and robotics solutions for offshore energy, defense, aerospace, and entertainment industries worldwide. Its service spectrum spans across distinct divisions like Subsea Robotics, Manufactured Products, Offshore Projects Group, Integrity Management & Digital Solutions, and Aerospace and Defense Technologies segments.
The corporation operates ROVs for various activities and offers advanced products for activities like pipeline repair, inspection, subsea hardware installation, and construction. Furthermore, it offers subsea installation and intervention services along with project management and engineering services. Its technologically driven solutions serve energy industry in addition to bulk cargo maritime and entertainment industries.
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