Comparing NCS Multistage (NASDAQ:NCSM) and NXT Energy Solutions (OTCMKTS:NSFDF)

NCS Multistage (NASDAQ:NCSM) and NXT Energy Solutions (OTCMKTS:NSFDF) are both small-cap energy companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, valuation, earnings, dividends, institutional ownership, risk and analyst recommendations.

Insider & Institutional Ownership

70.9% of NCS Multistage shares are owned by institutional investors. Comparatively, 26.2% of NXT Energy Solutions shares are owned by institutional investors. 11.9% of NCS Multistage shares are owned by insiders. Comparatively, 34.1% of NXT Energy Solutions shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for NCS Multistage and NXT Energy Solutions, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NCS Multistage	0	0	1	2	3.67
NXT Energy Solutions	0	0	0	0	0.00

Profitability

This table compares NCS Multistage and NXT Energy Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NCS Multistage	12.93%	10.32%	8.09%
NXT Energy Solutions	-16.33%	-21.32%	-13.28%

Earnings & Valuation

This table compares NCS Multistage and NXT Energy Solutions”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NCS Multistage	$183.63 million	1.22	$23.75 million	$8.56	9.95
NXT Energy Solutions	$11.70 million	3.06	-$1.66 million	($0.02)	-15.00

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

Risk and Volatility

NCS Multistage has a beta of 0.34, suggesting that its share price is 66% less volatile than the S&P 500. Comparatively, NXT Energy Solutions has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500.

Summary

NCS Multistage beats NXT Energy Solutions on 11 of the 14 factors compared between the two stocks.

About NCS Multistage

NCS Multistage Holdings, Inc. provides engineered products and support services for oil and natural gas well completions and construction, and field development strategies in the United States, Canada, and internationally. It offers fracturing systems, which include casing-installed sliding sleeves, downhole frac isolation assemblies, and sand jet perforating products; enhanced recovery products, such as sliding sleeve, as well as Terrus system, an injection control device; repeat precision products comprising composite frac plugs and bridge plugs, single-use disposable setting tools, express systems, and related products; chemical and radioactive tracer diagnostics services; and well construction products, including AirLock casing buoyancy system, Vecturon and Vectraset liner hanger systems, and Toe initiation sleeves. It offers its products and services primarily to exploration and production companies for use in onshore wells through technically-trained sales force, and operating partners or sales representatives. The company was formerly known as Pioneer Super Holdings, Inc. and changed its name to NCS Multistage Holdings, Inc. in December 2016. NCS Multistage Holdings, Inc. was founded in 2006 and is headquartered in Houston, Texas.

About NXT Energy Solutions

NXT Energy Solutions Inc., a technology company, provides services to the oil and gas industry through its proprietary stress field detection (SFD) technology worldwide. Its SFD technology, a remote sensing airborne survey system utilizes quantum-scale sensors to detect gravity field perturbations in an airborne survey method which can be used onshore and offshore to remotely identify traps and reservoirs with hydrocarbon and geothermal exploration potential. The company was formerly known as Energy Exploration Technologies Inc. and changed its name to NXT Energy Solutions Inc. in September 2008. NXT Energy Solutions Inc. was incorporated in 1994 and is headquartered in Calgary, Canada.