Comparing NPK International (NYSE:NPKI) and DNOW (NYSE:DNOW)

DNOW (NYSE:DNOW) and NPK International (NYSE:NPKI) are both small-cap industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, profitability, risk, valuation, earnings and analyst recommendations.

Earnings & Valuation

This table compares DNOW and NPK International”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DNOW	$2.37 billion	0.73	$81.00 million	$0.73	22.52
NPK International	$217.49 million	2.34	$14.52 million	($1.72)	-3.41

DNOW has higher revenue and earnings than NPK International. NPK International is trading at a lower price-to-earnings ratio than DNOW, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares DNOW and NPK International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DNOW	3.41%	9.04%	6.28%
NPK International	-28.47%	5.93%	4.08%

Insider and Institutional Ownership

97.6% of DNOW shares are owned by institutional investors. Comparatively, 80.8% of NPK International shares are owned by institutional investors. 2.6% of DNOW shares are owned by company insiders. Comparatively, 4.8% of NPK International shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

DNOW has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500. Comparatively, NPK International has a beta of 2.86, meaning that its stock price is 186% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for DNOW and NPK International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DNOW	0	1	1	0	2.50
NPK International	0	0	1	0	3.00

DNOW currently has a consensus price target of $17.00, indicating a potential upside of 3.42%. NPK International has a consensus price target of $12.00, indicating a potential upside of 104.43%. Given NPK International’s stronger consensus rating and higher possible upside, analysts clearly believe NPK International is more favorable than DNOW.

Summary

DNOW beats NPK International on 8 of the 13 factors compared between the two stocks.

About DNOW

DNOW Inc. distributes downstream energy and industrial products for petroleum refining, chemical processing, LNG terminals, power generation utilities, and customer on-site locations in the United States, Canada, and internationally. The company provides consumable maintenance, repair, and operating supplies; pipes, manual and automated valves, fittings, flanges, gaskets, fasteners, electrical instrumentations, artificial lift, pumping solutions, valve actuation and modular process, and measurement and control equipment; and mill supplies, tools, safety supplies, and personal protective equipment, as well as artificial lift systems, coatings, and miscellaneous expendable items. It also offers original equipment manufacturer equipment, including pumps, generator sets, air compressors, dryers, blowers, mixers, and valves; modular oil and gas tank battery solutions; and application systems, work processes, parts integration, optimization solutions, and after-sales support services. In addition, the company provides supply chain and materials management; inventory planning and management, procurement, and warehouse management, as well as solutions for logistics, point of issue technology, project management, business process, and performance metrics reporting services. It serves customers in the upstream, midstream, and downstream sectors of the energy industry, including drilling contractors, well-servicing companies, independent and national oil and gas companies, midstream operators, and refineries, as well as petrochemical, chemical, utilities, RNG facilities, and other downstream energy processors; and industrial and manufacturing companies. The company was formerly known as NOW Inc. and changed its name to DNOW Inc. in January 2024. DNOW Inc. was founded in 1862 and is headquartered in Houston, Texas.

About NPK International

NPK International Inc. provides products, rentals, and services primarily to the oil and natural gas exploration and production (E&P) industry. It operates through two segments, Fluids Systems and Industrial Solutions. The Fluids Systems segment provides drilling, completion, and stimulation fluids products and related technical services to customers primarily in the North America, Europe, the Middle East, and Africa, as well as other countries in the Asia Pacific and Latin America. The Industrial Solutions segment offers composite matting system rentals utilized for temporary worksite access; related site construction and services to customers in various markets, including power transmission, E&P, pipeline, renewable energy, petrochemical, construction, and other industries primarily in the United States and Europe; recyclable composite mats to customers worldwide; and access road construction, site planning and preparation, environmental protection, erosion control, and site restoration services. The company was formerly known as Newpark Resources, Inc. and changed its name to NPK International Inc. in December 2024. The company was incorporated in 1932 and is headquartered in The Woodlands, Texas.