Gulf Island Fabrication (NASDAQ:GIFI) versus Oil States International (NYSE:OIS) Financial Analysis

Oil States International (NYSE:OIS) and Gulf Island Fabrication (NASDAQ:GIFI) are both small-cap energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, profitability, institutional ownership, analyst recommendations, dividends and earnings.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Oil States International and Gulf Island Fabrication, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oil States International	0	1	1	0	2.50
Gulf Island Fabrication	0	0	0	0	0.00

Oil States International currently has a consensus target price of $7.25, indicating a potential upside of 17.58%. Given Oil States International’s stronger consensus rating and higher probable upside, analysts plainly believe Oil States International is more favorable than Gulf Island Fabrication.

Earnings and Valuation

This table compares Oil States International and Gulf Island Fabrication”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oil States International	$692.59 million	0.54	-$11.26 million	$0.11	56.05
Gulf Island Fabrication	$159.20 million	0.74	$14.74 million	$0.59	12.46

Gulf Island Fabrication has lower revenue, but higher earnings than Oil States International. Gulf Island Fabrication is trading at a lower price-to-earnings ratio than Oil States International, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Oil States International has a beta of 1.82, indicating that its share price is 82% more volatile than the S&P 500. Comparatively, Gulf Island Fabrication has a beta of 0.33, indicating that its share price is 67% less volatile than the S&P 500.

Profitability

This table compares Oil States International and Gulf Island Fabrication’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oil States International	1.02%	2.56%	1.76%
Gulf Island Fabrication	6.45%	12.59%	8.72%

Insider & Institutional Ownership

97.4% of Oil States International shares are owned by institutional investors. Comparatively, 46.4% of Gulf Island Fabrication shares are owned by institutional investors. 5.4% of Oil States International shares are owned by insiders. Comparatively, 20.1% of Gulf Island Fabrication shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

About Oil States International

Oil States International, Inc., through its subsidiaries, provides engineered capital equipment and products for the energy, industrial, and military sectors worldwide. The company operates through three segments: Well Site Services, Downhole Technologies, and Offshore/Manufactured Products. The Well Site Services segment offers a range of equipment and services that are used to drill for, establish, and maintain the flow of oil and natural gas from a well throughout its lifecycle. It also provides wireline support, frac stacks, isolation tools, downhole and extended reach activity, well testing and flowback operations, sand control, and land drilling services. The Downhole Technologies segment provides oil and gas perforation systems, and downhole tools in support of completion, intervention, wireline, and well abandonment operations. This segment also designs, manufactures, and markets its consumable engineered products to oilfield service, and exploration and production companies. The Offshore/Manufactured Products segment designs, manufactures, and markets capital equipment utilized on floating production systems, subsea pipeline infrastructure, and offshore drilling rigs and vessels. Its products include flexible bearings, advanced connector systems, high-pressure riser systems, managed pressure drilling systems, deepwater mooring systems, cranes, subsea pipeline products, and blow-out preventer stack integration products. This segment also provides short-cycle products, such as valves, elastomers, and other specialty products that are used in the land-based drilling and completion markets; and other products for use in industrial, military, alternative energy, and other applications. In addition, it offers specialty welding, fabrication, cladding and machining, offshore installation, and inspection and repair services. The company was incorporated in 1995 and is headquartered in Houston, Texas.

About Gulf Island Fabrication

Gulf Island Fabrication, Inc., together with its subsidiaries, operates as a fabricator of steel structures and modules in the United States. It operates through Services, Fabrication, and Shipyard divisions. The company provides maintenance, repair, construction, scaffolding, coatings, welding enclosures, and other specialty services on offshore platforms, inland structures, and industrial facilities; services required to connect production equipment and service modules, and equipment on offshore platforms; project management and commissioning services; hookup services; and civil construction and staffing services to the industrial and energy sectors, as well as undertakes municipal and drainage projects, including pump stations, levee reinforcement, bulkheads, and other public works. It also fabricates modules, skids, and piping systems for onshore refining, petrochemical, liquified natural gas (LNG), industrial, and offshore facilities; foundations, secondary steel components, and support structures for alternative energy developments and coastal mooring facilities; offshore production platforms and associated structures, including jacket foundations, piles, and topsides for fixed production and utility platforms, as well as hulls and topsides for floating production and utility platforms; and other complex steel structures and components. In addition, the company fabricates newbuild marine vessels and provides marine repair and maintenance services. The company serves international energy producers; refining, petrochemical, LNG, industrial, and power operators; and engineering, procurement, and construction companies. Gulf Island Fabrication, Inc. was incorporated in 1985 and is headquartered in The Woodlands, Texas.