SBM Offshore (OTCMKTS:SBFFY) vs. Trican Well Service (OTCMKTS:TOLWF) Critical Review

SBM Offshore (OTCMKTS:SBFFY) and Trican Well Service (OTCMKTS:TOLWF) are both energy companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, profitability, earnings, dividends, analyst recommendations and valuation.

Insider & Institutional Ownership

76.8% of Trican Well Service shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares SBM Offshore and Trican Well Service’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SBM Offshore	N/A	N/A	N/A
Trican Well Service	N/A	N/A	N/A

Earnings and Valuation

This table compares SBM Offshore and Trican Well Service”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SBM Offshore	N/A	N/A	N/A	$1.13	31.86
Trican Well Service	N/A	N/A	N/A	($0.21)	-24.69

Trican Well Service is trading at a lower price-to-earnings ratio than SBM Offshore, indicating that it is currently the more affordable of the two stocks.

Dividends

SBM Offshore pays an annual dividend of $0.75 per share and has a dividend yield of 2.1%. Trican Well Service pays an annual dividend of $0.30 per share and has a dividend yield of 5.9%. SBM Offshore pays out 66.1% of its earnings in the form of a dividend. Trican Well Service pays out -145.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Trican Well Service is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of current ratings for SBM Offshore and Trican Well Service, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SBM Offshore	0	0	0	1	4.00
Trican Well Service	0	0	1	0	3.00

About SBM Offshore

SBM Offshore N.V. provides floating production solutions to the offshore energy industry worldwide. It operates in two segments, Lease and Operate, and Turnkey. It engages in the design, supply, installation, operation, lease, and life extension of floating production storage and offloading (FPSO) vessels, as well as semi-submersibles, tension leg floaters, turret mooring systems, floating offshore wind, and brownfield and offshore loading terminals. The company also provides catenary anchor leg mooring (CALM) or single point mooring (SPM) terminals; and solutions for flexible flowline and subsea structure installation works. It operates a fleet of 15 FPSOs and 1 semi-submersible unit. The company was formerly known as IHC Caland and changed its name to SBM Offshore N.V. in 2005. SBM Offshore N.V. was founded in 1862 and is headquartered in Schiphol, the Netherlands.

About Trican Well Service

Trican Well Service Ltd., an equipment services company, provides various specialized products, equipment, services, and technology for use in the drilling, completion, stimulation, and reworking of oil and gas wells primarily in Canada. The company offers cementing solutions, including pre-flushes and spacers, cement plugs, lost circulation, cement design, and laboratory solutions, as well as surface, intermediate, production, liner, horizontal, and remedial/squeeze cementing services. It also provides hydraulic fracturing solutions, such as friction reducers, crosslinked gels, energized foam systems, visco-elastic systems, and high-rate nitrogen for coal bed methane fracturing and gelled hydrocarbons, as well as dissolvable ball sealers and diverting agents; and coiled tubing solutions comprising milling services, including fracturing plugs and ports, stage tool/debris subs, cement milling, and confirmation runs; coiled tubing fracturing; e-coil; in-house engineering; and acidizing and production enhancement services. In addition, the company offers fracture acidizing and production enhancement services that include restore well performance blockages from inorganic scales, emulsions, drilling mud, formation fines, clays, and organic deposits; nitrogen services; and engineering support, reservoir expertise, and laboratory services, as well as engages in the chemical sales. Trican Well Service Ltd. was incorporated in 1979 and is headquartered in Calgary, Canada.