Analyzing Solaris Energy Infrastructure (NYSE:SEI) and DMC Global (NASDAQ:BOOM)

DMC Global (NASDAQ:BOOM) and Solaris Energy Infrastructure (NYSE:SEI) are both energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, earnings, profitability and risk.

Analyst Ratings

This is a breakdown of recent recommendations for DMC Global and Solaris Energy Infrastructure, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DMC Global	1	2	1	0	2.00
Solaris Energy Infrastructure	0	2	10	0	2.83

DMC Global presently has a consensus price target of $9.00, suggesting a potential upside of 55.17%. Solaris Energy Infrastructure has a consensus price target of $94.17, suggesting a potential upside of 25.84%. Given DMC Global’s higher probable upside, equities research analysts clearly believe DMC Global is more favorable than Solaris Energy Infrastructure.

Earnings & Valuation

This table compares DMC Global and Solaris Energy Infrastructure”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DMC Global	$609.84 million	0.20	-$13.45 million	($0.93)	-6.24
Solaris Energy Infrastructure	$622.21 million	9.21	$30.17 million	$0.85	88.04

Solaris Energy Infrastructure has higher revenue and earnings than DMC Global. DMC Global is trading at a lower price-to-earnings ratio than Solaris Energy Infrastructure, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares DMC Global and Solaris Energy Infrastructure’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DMC Global	-3.37%	-6.84%	-2.57%
Solaris Energy Infrastructure	7.19%	13.26%	4.80%

Volatility and Risk

DMC Global has a beta of 1.8, meaning that its share price is 80% more volatile than the S&P 500. Comparatively, Solaris Energy Infrastructure has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500.

Institutional & Insider Ownership

77.6% of DMC Global shares are held by institutional investors. Comparatively, 67.4% of Solaris Energy Infrastructure shares are held by institutional investors. 7.1% of DMC Global shares are held by company insiders. Comparatively, 20.2% of Solaris Energy Infrastructure shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Solaris Energy Infrastructure beats DMC Global on 11 of the 14 factors compared between the two stocks.

About DMC Global

DMC Global Inc. provides a suite of engineered products and various solutions for the construction, energy, industrial processing, and transportation markets worldwide. The company operates through three segments: Arcadia, DynaEnergetics, and NobelClad. The Arcadia segment manufactures, assembles, and sells architectural building products, including exterior and interior framing systems, curtain walls, windows, doors, and interior partitions; architectural components, architectural framing systems, entrance systems, and sun control products; sliding and glazing systems; and thermally broken steel, aluminum windows and doors, and wood doors and windows. It sells its products through a national in-house sales force for buildings, such as office towers, airports, hotels, education and athletic facilities, health care locations, government buildings, retail centers, mixed use, and multi-family residential buildings. The DynaEnergetics segment designs, manufactures, markets, and sells perforating systems, including initiation systems, shaped charges, detonating cords, gun hardware, and control panels; and perforating systems and associated hardware for the oil and gas industry. It sells its products through direct selling, distributors, and independent sales representatives. The NobelClad segment produces and sells explosion-welded clad metal plates for use in the construction of heavy, corrosion resistant pressure vessels, and heat exchangers for oil and gas, chemical and petrochemical, alternative energy, hydrometallurgy, aluminum production, shipbuilding, rail car manufacturing, power generation, and industrial refrigeration industries. It sells its products through direct sales personnel, program managers, and independent sales representatives. The company was formerly known as Dynamic Materials Corporation and changed its name to DMC Global Inc. in November 2016. DMC Global Inc. was founded in 1965 and is headquartered in Broomfield, Colorado.

About Solaris Energy Infrastructure

Solaris Energy Infrastructure, Inc. is a holding company, which engages in the manufacture of patented mobile proppant management systems that unload, store, and deliver proppant to oil and natural gas well sites. Its products include Mobile Proppant and Mobile Chemical Management Systems, and Inventory Management Software. The firm’s services include field, last mile management, and transloading services. The company was founded by William A. Zartler in 2014 and is headquartered in Houston, TX.