Financial Comparison: DMC Global (NASDAQ:BOOM) versus Forum Energy Technologies (NYSE:FET)

Forum Energy Technologies (NYSE:FET) and DMC Global (NASDAQ:BOOM) are both small-cap energy companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, valuation and dividends.

Volatility and Risk

Forum Energy Technologies has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500. Comparatively, DMC Global has a beta of 1.8, suggesting that its stock price is 80% more volatile than the S&P 500.

Insider & Institutional Ownership

65.6% of Forum Energy Technologies shares are held by institutional investors. Comparatively, 77.6% of DMC Global shares are held by institutional investors. 7.7% of Forum Energy Technologies shares are held by insiders. Comparatively, 7.1% of DMC Global shares 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.

Earnings and Valuation

This table compares Forum Energy Technologies and DMC Global”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Forum Energy Technologies	$791.47 million	1.22	-$9.66 million	($0.15)	-572.37
DMC Global	$587.61 million	0.20	-$13.45 million	($0.93)	-6.02

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

Analyst Ratings

This is a summary of current ratings and target prices for Forum Energy Technologies and DMC Global, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Forum Energy Technologies	1	0	0	1	2.50
DMC Global	1	2	1	0	2.00

DMC Global has a consensus target price of $9.00, suggesting a potential upside of 60.71%. Given DMC Global’s higher probable upside, analysts plainly believe DMC Global is more favorable than Forum Energy Technologies.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Forum Energy Technologies	-0.19%	9.45%	3.58%
DMC Global	-3.37%	-6.84%	-2.57%

Summary

Forum Energy Technologies beats DMC Global on 10 of the 15 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 DMC Global

DMC Global Inc. provides a suite of engineered products and various solutions for the construction, energy, industrial processing, and transportation markets worldwide. The company operates through three segments: Arcadia, DynaEnergetics, and NobelClad. The Arcadia segment manufactures, assembles, and sells architectural building products, including exterior and interior framing systems, curtain walls, windows, doors, and interior partitions; architectural components, architectural framing systems, entrance systems, and sun control products; sliding and glazing systems; and thermally broken steel, aluminum windows and doors, and wood doors and windows. It sells its products through a national in-house sales force for buildings, such as office towers, airports, hotels, education and athletic facilities, health care locations, government buildings, retail centers, mixed use, and multi-family residential buildings. The DynaEnergetics segment designs, manufactures, markets, and sells perforating systems, including initiation systems, shaped charges, detonating cords, gun hardware, and control panels; and perforating systems and associated hardware for the oil and gas industry. It sells its products through direct selling, distributors, and independent sales representatives. The NobelClad segment produces and sells explosion-welded clad metal plates for use in the construction of heavy, corrosion resistant pressure vessels, and heat exchangers for oil and gas, chemical and petrochemical, alternative energy, hydrometallurgy, aluminum production, shipbuilding, rail car manufacturing, power generation, and industrial refrigeration industries. It sells its products through direct sales personnel, program managers, and independent sales representatives. The company was formerly known as Dynamic Materials Corporation and changed its name to DMC Global Inc. in November 2016. DMC Global Inc. was founded in 1965 and is headquartered in Broomfield, Colorado.