Analyzing Petrofac (OTCMKTS:POFCY) & Ranger Energy Services (NYSE:RNGR)

Ranger Energy Services (NYSE:RNGR) and Petrofac (OTCMKTS:POFCY) are both small-cap energy companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, risk, earnings, dividends and institutional ownership.

Analyst Ratings

This is a breakdown of current recommendations for Ranger Energy Services and Petrofac, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ranger Energy Services	0	2	1	0	2.33
Petrofac	0	0	0	0	0.00

Ranger Energy Services presently has a consensus price target of $13.00, indicating a potential downside of 15.58%. Given Ranger Energy Services’ stronger consensus rating and higher probable upside, research analysts clearly believe Ranger Energy Services is more favorable than Petrofac.

Institutional and Insider Ownership

68.1% of Ranger Energy Services shares are held by institutional investors. 2.8% of Ranger Energy Services shares are held 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.

Profitability

This table compares Ranger Energy Services and Petrofac’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ranger Energy Services	2.72%	5.60%	4.05%
Petrofac	N/A	N/A	N/A

Earnings & Valuation

This table compares Ranger Energy Services and Petrofac”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ranger Energy Services	$571.10 million	0.58	$18.40 million	$0.65	23.69
Petrofac	$2.50 billion	0.00	-$505.00 million	N/A	N/A

Ranger Energy Services has higher earnings, but lower revenue than Petrofac.

Volatility and Risk

Ranger Energy Services has a beta of 0.15, indicating that its stock price is 85% less volatile than the S&P 500. Comparatively, Petrofac has a beta of 2.88, indicating that its stock price is 188% more volatile than the S&P 500.

Summary

Ranger Energy Services beats Petrofac on 10 of the 12 factors compared between the two stocks.

About Ranger Energy Services

Ranger Energy Services, Inc. provides onshore high specification well service rigs, wireline services, and complementary services to exploration and production companies in the United States. It operates through three segments: High Specification Rigs, Wireline Services, and Processing Solutions and Ancillary Services. The High Specification Rigs segment offers well service rigs and complementary equipment and services to facilitate operations throughout the lifecycle of a well; and well maintenance services. This segment also has a fleet of 402 well service rigs. The Wireline Services segment provides wireline production and intervention services to provide information to identify and resolve well production problems through cased hole logging, perforating, mechanical, and pipe recovery services; wireline completion services that are used primarily for pump down perforating operations to create perforations or entry holes through the production casing; and pumping services. This segment also has a fleet of 66 wireline units and 29 high-pressure pump trucks. The Processing Solutions and Ancillary Services segment rents well service-related equipment consisting of fluid pumps, power swivels, well control packages, hydraulic catwalks, frac tanks, pipe racks, and pipe handling tools; and coiled tubing, decommissioning, and snubbing services, as well as provides proprietary and modular equipment for the processing of natural gas streams. This segment also engages in the rental, installation, commissioning, start up, operation, and maintenance of mechanical refrigeration units, nitrogen gas liquid stabilizer units, nitrogen gas liquid storage units, and related equipment. Ranger Energy Services, Inc. was incorporated in 2017 and is headquartered in Houston, Texas.

About Petrofac

Petrofac Limited designs, builds, manages, and maintains infrastructure for the energy industries in the United Kingdom, Algeria, Thailand, Oman, Kuwait, Iraq, the United Arab Emirates, the Netherlands, and internationally. It operates through three segments: Engineering & Construction (E&C); Asset Solutions; and Integrated Energy Services (IES). The E&C segment provides onshore and offshore engineering, procurement, construction, installation, and commissioning services. The Asset Solutions segment offers concept, feasibility, and front-end engineering design services, as well as manages and maintains onshore and offshore operations. The IES segment focuses on delivering value from the existing asset portfolio. The company was founded in 1981 and is based in St Helier, Jersey.