Drilling Tools International (NASDAQ:DTI – Get Free Report) and Innovex International (NYSE:INVX – Get Free Report) are both small-cap oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, dividends, earnings and risk.
Profitability
This table compares Drilling Tools International and Innovex International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Drilling Tools International | 5.46% | 15.38% | 8.89% |
| Innovex International | 12.31% | -0.73% | -0.61% |
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Drilling Tools International and Innovex International, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Drilling Tools International | 0 | 0 | 1 | 0 | 3.00 |
| Innovex International | 1 | 0 | 0 | 1 | 2.50 |
Institutional and Insider Ownership
2.8% of Drilling Tools International shares are held by institutional investors. 14.7% of Drilling Tools International shares are held by company insiders. Comparatively, 3.1% of Innovex International shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Risk and Volatility
Drilling Tools International has a beta of -0.86, suggesting that its share price is 186% less volatile than the S&P 500. Comparatively, Innovex International has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500.
Valuation and Earnings
This table compares Drilling Tools International and Innovex International”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Drilling Tools International | $149.79 million | 0.71 | $14.75 million | $0.28 | 10.71 |
| Innovex International | $660.80 million | 1.79 | $600,000.00 | $1.83 | 9.60 |
Drilling Tools International has higher earnings, but lower revenue than Innovex International. Innovex International is trading at a lower price-to-earnings ratio than Drilling Tools International, indicating that it is currently the more affordable of the two stocks.
Summary
Drilling Tools International beats Innovex International on 8 of the 15 factors compared between the two stocks.
About Drilling Tools International
Drilling Tools International Corporation provides oilfield equipment and services to oil and natural gas sectors in North America, Europe, and the Middle East. It offers downhole tool rentals, machining, and inspection services to support the global drilling and wellbore construction industry. The company also provides products are bottom hole assembly components, such as stabilizers, subs, non-magnetic and steel drill collars, hole openers, and roller reamers, as well as drill pipe and drill pipe accessories; ancillary equipment and handling tools to support its rental platform, including float valves, ring gauges, tool baskets, lift bail, lift subs, mud magnets, elevators, bracket and bail assemblies, slips, tongs, stabbing guides and safety clamps; and blowout preventers, and pressure control accessory equipment. In addition, it offers tool rental services, which consists of rental, inspection, machining, and repair services; rents downhole drilling tools used in horizontal and directional drilling of oil and natural gas; rents kellys, pip joints, work strings; maintains a fleet of rental equipment consisting of drill collars, stabilizers, crossover subs, wellbore conditioning tools, drill pipe, hevi-wate drill pipe, and tubing; rents surface control equipment, such as blowout preventers and handling tools; and provides downhole products for producing wells. Drilling Tools International Corporation is headquartered in Houston, Texas.
About Innovex International
Innovex International, Inc. engages in the provision of solutions for both onshore and offshore applications within the oil and gas industry. The company was founded on September 15, 2016 and is headquartered in Humble, TX.
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