Reviewing NCS Multistage (NASDAQ:NCSM) and Dawson Geophysical (NASDAQ:DWSN)

Dawson Geophysical (NASDAQ:DWSN) and NCS Multistage (NASDAQ:NCSM) are both small-cap energy companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Dawson Geophysical and NCS Multistage, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dawson Geophysical	0	1	0	0	2.00
NCS Multistage	0	2	0	1	2.67

Insider and Institutional Ownership

7.9% of Dawson Geophysical shares are owned by institutional investors. Comparatively, 70.9% of NCS Multistage shares are owned by institutional investors. 0.3% of Dawson Geophysical shares are owned by insiders. Comparatively, 11.9% of NCS Multistage shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Dawson Geophysical has a beta of -0.14, suggesting that its share price is 114% less volatile than the S&P 500. Comparatively, NCS Multistage has a beta of 0.22, suggesting that its share price is 78% less volatile than the S&P 500.

Valuation and Earnings

This table compares Dawson Geophysical and NCS Multistage”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dawson Geophysical	$104.31 million	0.99	-$1.94 million	$0.12	27.67
NCS Multistage	$183.63 million	0.76	$23.75 million	$4.86	10.98

NCS Multistage has higher revenue and earnings than Dawson Geophysical. NCS Multistage is trading at a lower price-to-earnings ratio than Dawson Geophysical, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Dawson Geophysical and NCS Multistage’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dawson Geophysical	3.49%	19.56%	6.73%
NCS Multistage	7.61%	2.40%	1.91%

Summary

NCS Multistage beats Dawson Geophysical on 9 of the 13 factors compared between the two stocks.

About Dawson Geophysical

Dawson Geophysical Company provides onshore seismic data acquisition and processing services in the United States and Canada. The company acquires and processes 2-D, 3-D, and multi-component seismic data for its clients, including oil and gas companies, and independent oil and gas operators, as well as providers of multi-client data libraries and carbon capture sequestration projects. Its seismic crews supply seismic data primarily to companies engaged in the exploration and development of oil and natural gas on land and in land-to-water transition areas, as well as potash mining industry. The company was founded in 1952 and is headquartered in Midland, Texas. Dawson Geophysical Company is a subsidiary of Wilks Brothers, LLC.

About NCS Multistage

NCS Multistage Holdings, Inc. provides engineered products and support services for oil and natural gas well completions and construction, and field development strategies in the United States, Canada, and internationally. It offers fracturing systems, which include casing-installed sliding sleeves, downhole frac isolation assemblies, and sand jet perforating products; enhanced recovery products, such as sliding sleeve, as well as Terrus system, an injection control device; repeat precision products comprising composite frac plugs and bridge plugs, single-use disposable setting tools, express systems, and related products; chemical and radioactive tracer diagnostics services; and well construction products, including AirLock casing buoyancy system, Vecturon and Vectraset liner hanger systems, and Toe initiation sleeves. It offers its products and services primarily to exploration and production companies for use in onshore wells through technically-trained sales force, and operating partners or sales representatives. The company was formerly known as Pioneer Super Holdings, Inc. and changed its name to NCS Multistage Holdings, Inc. in December 2016. NCS Multistage Holdings, Inc. was founded in 2006 and is headquartered in Houston, Texas.