Analyzing Natural Gas Services Group (NGS) and Dresser-Rand Group (DRC)

Natural Gas Services Group (NYSE: NGS) and Dresser-Rand Group (NYSE:DRC) are both oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, dividends, earnings and risk.

Insider and Institutional Ownership

88.2% of Natural Gas Services Group shares are held by institutional investors. 6.9% of Natural Gas Services Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Natural Gas Services Group and Dresser-Rand Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Natural Gas Services Group 0 0 2 0 3.00
Dresser-Rand Group 0 0 0 0 N/A

Natural Gas Services Group currently has a consensus target price of $35.50, suggesting a potential upside of 50.42%. Given Natural Gas Services Group’s higher probable upside, equities research analysts clearly believe Natural Gas Services Group is more favorable than Dresser-Rand Group.

Valuation & Earnings

This table compares Natural Gas Services Group and Dresser-Rand Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Natural Gas Services Group $68.00 million 4.49 $25.46 million $0.26 90.77
Dresser-Rand Group N/A N/A N/A N/A N/A

Natural Gas Services Group has higher revenue and earnings than Dresser-Rand Group.

Profitability

This table compares Natural Gas Services Group and Dresser-Rand Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Natural Gas Services Group 4.85% 1.41% 1.13%
Dresser-Rand Group -4.64% -7.65% -2.86%

Summary

Natural Gas Services Group beats Dresser-Rand Group on 8 of the 8 factors compared between the two stocks.

Natural Gas Services Group Company Profile

Natural Gas Services Group, Inc. is a provider of small to medium horsepower compression equipment to the natural gas industry. The Company focuses primarily on the non-conventional natural gas and oil production business in the United States, such as coal bed methane, gas shale, tight gas and oil shales. The Company manufactures, fabricates and rents natural gases compressors that enhance the production of natural gas wells and provides maintenance services for its natural gas compressors. In addition, it sells custom fabricated natural gas compressors to meet customer specifications dictated by well pressures, production characteristics and particular applications. It also manufactures and sells flare systems for oil and gas plant and production facilities. The Company’s operating units include Gas Compressor Rental, Engineered Equipment Sales, Service and Maintenance, and Corporate.

Dresser-Rand Group Company Profile

Dresser-Rand Group Inc. is a supplier of custom-engineered rotating equipment solutions for long-life, critical applications in the oil, gas, chemical, petrochemical, process, power generation, military and other industries around the world. The Company operates through two segments: New Units and Aftermarket Parts and Services. New Units segment offers standardized equipment, such as engines and single stage steam turbines. The Company’s Aftermarket Parts and Services segment offer a range of aftermarket parts and services, including replacement parts, field service turnaround, service and repair, operation and maintenance contracts, rotor/spare parts storage, condition monitoring, controls retrofit, site/reliability audits, remote area energy solutions, equipment repair and re-rates, equipment installation, applied technology, long-term service agreements, special coatings/welding, product training, turnkey installation/project management and energy asset management.

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