Reviewing National Energy Services Reunited (NASDAQ:NESR) and Oil States International (NYSE:OIS)

National Energy Services Reunited (NASDAQ:NESR) and Oil States International (NYSE:OIS) are both small-cap energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, dividends, valuation, analyst recommendations, earnings and institutional ownership.

Analyst Ratings

This is a summary of recent ratings and price targets for National Energy Services Reunited and Oil States International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
National Energy Services Reunited	1	1	5	0	2.57
Oil States International	0	2	0	0	2.00

National Energy Services Reunited currently has a consensus target price of $16.33, indicating a potential upside of 30.79%. Oil States International has a consensus target price of $6.50, indicating a potential upside of 6.64%. Given National Energy Services Reunited’s stronger consensus rating and higher probable upside, equities research analysts plainly believe National Energy Services Reunited is more favorable than Oil States International.

Insider and Institutional Ownership

15.6% of National Energy Services Reunited shares are owned by institutional investors. Comparatively, 97.4% of Oil States International shares are owned by institutional investors. 11.6% of National Energy Services Reunited shares are owned by insiders. Comparatively, 6.8% of Oil States International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk & Volatility

National Energy Services Reunited has a beta of 0.38, indicating that its share price is 62% less volatile than the S&P 500. Comparatively, Oil States International has a beta of 1.8, indicating that its share price is 80% more volatile than the S&P 500.

Valuation and Earnings

This table compares National Energy Services Reunited and Oil States International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
National Energy Services Reunited	$1.30 billion	0.93	$74.27 million	$0.77	16.22
Oil States International	$655.12 million	0.56	-$11.26 million	$0.37	16.47

National Energy Services Reunited has higher revenue and earnings than Oil States International. National Energy Services Reunited 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.

Profitability

This table compares National Energy Services Reunited and Oil States International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
National Energy Services Reunited	5.57%	9.91%	5.03%
Oil States International	1.02%	2.56%	1.76%

Summary

National Energy Services Reunited beats Oil States International on 11 of the 14 factors compared between the two stocks.

About National Energy Services Reunited

National Energy Services Reunited Corp. provides oilfield services in the Middle East and North Africa region. The company’s Production Services segment offers hydraulic fracturing services; coiled tubing services, including nitrogen lifting, fishing, milling, clean-out, scale removal, and other well applications; stimulation and pumping services; primary and remedial cementing services; nitrogen services; filtration services, as well as frac tanks and pumping units; and pipeline and industrial services, such as water filling and hydro testing, nitrogen purging, and de-gassing and pressure testing, as well as cutting/welding and cooling down piping/vessels systems. This segment also provides production assurance chemicals; integrated project management projects; artificial lift services; and surface and subsurface safety systems, high-pressure packer systems, flow controls, service tools, expandable liner technology, vacuum insulated tubing technology for steam applications, and engineering capabilities with manufacturing capacity and testing facilities, as well as sources and treats water for oil and gas, municipal, and industrial use. Its Drilling and Evaluation Services segment offers drilling and workover rigs; rigs and integrated services; fishing and remediation solutions; directional and turbines drilling; drilling fluid systems and related technologies; wireline logging; slickline services for removal of scale, wax and sand build-up, setting plugs, changing out gas lift valves, and fishing and other well applications; and well testing services to measure solids, gas, and oil and water produced from well, as well as rents drilling tools. This segment also provides oilfield solutions for thru-tubing intervention; tubular running services; and a range of wellhead products, flow control equipment, and frac equipment. National Energy Services Reunited Corp. was incorporated in 2017 and is headquartered in Houston, Texas.

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.