Contrasting Keane Group (FRAC) and SEACOR Holdings (CKH)

Keane Group (NYSE: FRAC) and SEACOR Holdings (NYSE:CKH) are both small-cap energy companies, but which is the better business? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, earnings, risk, valuation and institutional ownership.

Profitability

This table compares Keane Group and SEACOR Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Keane Group -9.90% -19.19% -8.80%
SEACOR Holdings -15.49% -9.19% -3.72%

Insider & Institutional Ownership

37.4% of Keane Group shares are owned by institutional investors. Comparatively, 89.2% of SEACOR Holdings shares are owned by institutional investors. 10.5% of SEACOR Holdings shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Keane Group and SEACOR Holdings’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Keane Group $420.57 million 3.88 -$187.08 million ($1.22) -11.96
SEACOR Holdings $830.98 million 1.05 -$215.89 million ($4.84) -10.13

Keane Group has higher revenue, but lower earnings than SEACOR Holdings. Keane Group is trading at a lower price-to-earnings ratio than SEACOR Holdings, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and recommmendations for Keane Group and SEACOR Holdings, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Keane Group 0 9 10 0 2.53
SEACOR Holdings 0 2 0 0 2.00

Keane Group currently has a consensus target price of $20.78, suggesting a potential upside of 42.41%. SEACOR Holdings has a consensus target price of $48.00, suggesting a potential downside of 2.06%. Given Keane Group’s stronger consensus rating and higher probable upside, equities analysts plainly believe Keane Group is more favorable than SEACOR Holdings.

Summary

Keane Group beats SEACOR Holdings on 7 of the 12 factors compared between the two stocks.

About Keane Group

Keane Group, Inc. is provider of integrated well completion services in the United States, with a focus on demanding completion solutions. The Company’s segments include Completion Services, which comprises hydraulic fracturing and wireline divisions, and Other Services, which consists of coiled tubing, cementing and drilling divisions. It provides hydraulic fracturing and wireline services pursuant to contractual arrangements, such as term contracts and pricing agreements, or on a spot market basis. It provides certain complementary services such as coiled tubing, cementing and drilling pursuant to contractual arrangements, such as term contracts on a spot basis. Its primary services include horizontal and vertical fracturing, wireline perforation and logging and engineered solutions, as well as other value-added service offerings. As of July 3, 2017, the Company had approximately 1.2 million hydraulic horsepower spread across 23 hydraulic fracturing fleets and 31 wireline trucks.

About SEACOR Holdings

SEACOR Holdings Inc., is engaged in the business of transportation and logistics, alcohol manufacturing, merchandising, and risk management consultancy. The Company’s segments include, Inland River Services, Shipping Services and Illinois Corn Processing. Inland River Services segment operates river transportation equipment used for moving agricultural and industrial commodities and petroleum and chemical products. Shipping Services segment operates a fleet of United States flag marine transportation related assets. Illinois Corn Processing segment produces alcohol used in the food, beverage, industrial and petrochemical end-markets. The Company also offers emergency and crisis services, lending and leasing activities, and noncontrolling investments in various other businesses.

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