Valaris (NYSE:VAL) and Forum Energy Technologies (NYSE:FET) Head-To-Head Analysis

Forum Energy Technologies (NYSE:FET) and Valaris (NYSE:VAL) are both energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Institutional & Insider Ownership

65.6% of Forum Energy Technologies shares are owned by institutional investors. Comparatively, 96.7% of Valaris shares are owned by institutional investors. 7.7% of Forum Energy Technologies shares are owned by company insiders. Comparatively, 0.8% of Valaris shares are owned 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.

Valuation and Earnings

This table compares Forum Energy Technologies and Valaris”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Forum Energy Technologies	$791.47 million	1.16	-$9.66 million	$2.54	32.24
Valaris	$2.37 billion	2.92	$982.80 million	$13.39	7.43

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

Profitability

This table compares Forum Energy Technologies and Valaris’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Forum Energy Technologies	3.46%	14.77%	5.57%
Valaris	43.95%	9.25%	5.35%

Risk & Volatility

Forum Energy Technologies has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500. Comparatively, Valaris has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Forum Energy Technologies and Valaris, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Forum Energy Technologies	1	1	0	0	1.50
Valaris	1	6	0	0	1.86

Valaris has a consensus price target of $68.50, suggesting a potential downside of 31.18%. Given Valaris’ stronger consensus rating and higher probable upside, analysts clearly believe Valaris is more favorable than Forum Energy Technologies.

Summary

Valaris beats Forum Energy Technologies on 9 of the 13 factors compared between the two stocks.

About Forum Energy Technologies

Forum Energy Technologies, Inc. designs, manufactures, and distributes products serving the oil, natural gas, industrial, and renewable energy industries in the United States and internationally. It operates through three segments: Drilling & Downhole, Completions, and Production. The Drilling & Downhole segment designs, manufactures, and supplies products, and provides related services to the drilling, well construction, artificial lift, and subsea energy construction and services markets, including applications in oil and natural gas, renewable energy, defense, and communications. This segment offers drilling technologies consisting of capital equipment and a line of products consumed in the drilling process; well construction casing and cementing equipment, and products for artificial lift equipment and cables; and subsea remotely operated vehicles and trenchers, submarine rescue vehicles, specialty components and tools, and technical services. The Completions segment offers hydraulic fracturing pumps, cooling systems, high-pressure flexible hoses, and flow iron for pressure pumping markets; wireline cable and pressure control equipment for well completion and intervention service markets; and coiled tubing strings and coiled line pipe and related services. The Production segment designs, manufactures, and supplies products, and provides related equipment and services for production and infrastructure markets. This segment offers engineered process systems, production equipment, specialty separation equipment, and various industrial valves for oil and natural gas customers, power generation, renewable energy, and other general industrial applications. The company was formerly known as Forum Oilfield Technologies, Inc. and changed its name to Forum Energy Technologies, Inc. in August 2010. Forum Energy Technologies, Inc. was incorporated in 2005 and is headquartered in Houston, Texas.

About Valaris

Valaris Limited, together with its subsidiaries, provides offshore contract drilling services Gulf of Mexico, South America, North Sea, the Middle East, Africa, and the Asia Pacific. The company operates through four segments: Floaters, Jackups, ARO, and Other. It owns an offshore drilling rig fleet, which include drillships, dynamically positioned semisubmersible rigs, moored semisubmersible rig, and jackup rigs. It serves international, government-owned, and independent oil and gas. Valaris Limited was founded in 1975 and is based in Hamilton, Bermuda.