TechnipFMC (NYSE:FTI) and RPC (NYSE:RES) Critical Comparison

TechnipFMC (NYSE:FTI) and RPC (NYSE:RES) are both energy companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, dividends, risk, profitability, analyst recommendations, earnings and institutional ownership.

Profitability

This table compares TechnipFMC and RPC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TechnipFMC	9.70%	31.14%	10.16%
RPC	1.97%	5.24%	3.97%

Valuation and Earnings

This table compares TechnipFMC and RPC”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TechnipFMC	$9.93 billion	2.85	$963.90 million	$2.31	30.50
RPC	$1.63 billion	0.89	$32.08 million	$0.15	43.63

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

Institutional and Insider Ownership

96.6% of TechnipFMC shares are held by institutional investors. Comparatively, 41.1% of RPC shares are held by institutional investors. 1.4% of TechnipFMC shares are held by insiders. Comparatively, 58.8% of RPC shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

TechnipFMC has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, RPC has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for TechnipFMC and RPC, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TechnipFMC	0	4	13	1	2.83
RPC	1	4	0	0	1.80

TechnipFMC presently has a consensus target price of $61.73, suggesting a potential downside of 12.38%. RPC has a consensus target price of $5.50, suggesting a potential downside of 15.97%. Given TechnipFMC’s stronger consensus rating and higher probable upside, equities analysts clearly believe TechnipFMC is more favorable than RPC.

Dividends

TechnipFMC pays an annual dividend of $0.20 per share and has a dividend yield of 0.3%. RPC pays an annual dividend of $0.16 per share and has a dividend yield of 2.4%. TechnipFMC pays out 8.7% of its earnings in the form of a dividend. RPC pays out 106.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. TechnipFMC has increased its dividend for 1 consecutive years.

Summary

TechnipFMC beats RPC on 15 of the 18 factors compared between the two stocks.

About TechnipFMC

TechnipFMC plc engages in the energy projects, technologies, and systems and services businesses in Europe, Central Asia, North America, Latin America, the Asia Pacific, Africa, the Middle East, and internationally. It operates through two segments: Subsea and Surface Technologies. The Subsea segment engages in the design, engineering, procurement, manufacturing, fabrication, installation, and life of field services for subsea systems, subsea field infrastructure, and subsea pipe systems used in oil and gas production and transportation. It provides subsea production and processing system; flexible pipe; subsea umbilicals, risers, and flowlines; vessels; robotics; well and asset services; and Subsea Studio for optimizing the development, execution, and operation of current and future subsea fields. The Surface Technologies segment designs, manufactures, and services products and systems used in land and shallow water exploration and production of crude oil and natural gas. This segment offers drilling; surface wellheads and production trees systems; iComplete, a pressure control system; fracturing tree and manifold systems; flexible pipes; safety and integrity systems, multiphase meter modules, in-line separation and processing systems, and standard pumps; well control and integrity systems; separation and processing systems; skid systems; and flow measurement and automation solutions. It also offers planning, testing and installation, commissioning, operations, replacement and upgrade, maintenance, storage, preservation, intervention, integrity, decommissioning, and abandonment; and supplies flowline products and services. TechnipFMC plc was founded in 1884 and is headquartered in Houston, Texas.

About RPC

RPC, Inc., through its subsidiaries, engages provision of a range of oilfield services and equipment for the oil and gas companies involved in the exploration, production, and development of oil and gas properties. The company operates through Technical Services and Support Services segments. The Technical Services segment offers pressure pumping, fracturing, acidizing, cementing, downhole tools, coiled tubing, snubbing, nitrogen, well control, wireline, pump down, and fishing services that are used in the completion, production, and maintenance of oil and gas wells. The Support Services segment provides a range of rental tools for onshore and offshore oil and gas well drilling, completion, and workover activities. This segment also offers oilfield pipe inspection, and pipe management and storage services, as well as well control training and consulting services. It operates in the United States, Africa, Canada, Argentina, China, Mexico, Latin America, the Middle East, and internationally. The company was incorporated in 1984 and is headquartered in Atlanta, Georgia.