Reviewing ProFrac (ACDC) & Its Peers

ProFrac (NASDAQ:ACDC) is one of 177 publicly-traded companies in the “Energy Equipment & Services” industry, but how does it weigh in compared to its peers? We will compare ProFrac to related businesses based on the strength of its dividends, earnings, valuation, analyst recommendations, profitability, institutional ownership and risk.

Risk and Volatility

ProFrac has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500. Comparatively, ProFrac’s peers have a beta of 0.82, meaning that their average stock price is 18% less volatile than the S&P 500.

Profitability

This table compares ProFrac and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ProFrac	-22.83%	-45.18%	-13.61%
ProFrac Competitors	-10.65%	7.48%	1.47%

Institutional and Insider Ownership

12.8% of ProFrac shares are held by institutional investors. Comparatively, 48.9% of shares of all “Energy Equipment & Services” companies are held by institutional investors. 2.2% of ProFrac shares are held by insiders. Comparatively, 12.3% of shares of all “Energy Equipment & Services” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares ProFrac and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
ProFrac	$1.94 billion	-$369.00 million	-1.57
ProFrac Competitors	$3.23 billion	$29.73 million	12.64

ProFrac’s peers have higher revenue and earnings than ProFrac. ProFrac is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a summary of current recommendations and price targets for ProFrac and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ProFrac	2	2	1	0	1.80
ProFrac Competitors	1677	6838	8624	489	2.45

ProFrac presently has a consensus target price of $4.50, indicating a potential upside of 31.58%. As a group, “Energy Equipment & Services” companies have a potential upside of 36.91%. Given ProFrac’s peers stronger consensus rating and higher possible upside, analysts plainly believe ProFrac has less favorable growth aspects than its peers.

Summary

ProFrac peers beat ProFrac on 12 of the 13 factors compared.

About ProFrac

ProFrac Holding Corp. operates as a technology-focused energy services holding company in the United States. It operates through three segments: Stimulation Services, Manufacturing, and Proppant Production. The company offers hydraulic fracturing, well stimulation, in-basin frac sand, and other completion services and complementary products and services to upstream oil and natural gas companies engaged in the exploration and production of unconventional oil and natural gas resources. It also manufactures and sells high horsepower pumps, valves, piping, swivels, large-bore manifold systems, and fluid ends. ProFrac Holding Corp. was founded in 2016 and is headquartered in Willow Park, Texas.