Basic Energy Services (NYSE:BAS) and Eco-Stim Energy Solutions (OTCMKTS:ESES) are both small-cap oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, analyst recommendations, risk, valuation, institutional ownership and earnings.
Insider & Institutional Ownership
87.8% of Basic Energy Services shares are owned by institutional investors. Comparatively, 1.9% of Eco-Stim Energy Solutions shares are owned by institutional investors. 3.9% of Basic Energy Services shares are owned by insiders. Comparatively, 4.7% of Eco-Stim Energy Solutions shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Volatility & Risk
Basic Energy Services has a beta of 2.41, suggesting that its share price is 141% more volatile than the S&P 500. Comparatively, Eco-Stim Energy Solutions has a beta of 2.14, suggesting that its share price is 114% more volatile than the S&P 500.
This is a breakdown of recent recommendations for Basic Energy Services and Eco-Stim Energy Solutions, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Basic Energy Services||0||2||1||0||2.33|
|Eco-Stim Energy Solutions||0||0||0||0||N/A|
Basic Energy Services currently has a consensus price target of $3.00, suggesting a potential upside of 57.89%. Given Basic Energy Services’ higher possible upside, equities research analysts clearly believe Basic Energy Services is more favorable than Eco-Stim Energy Solutions.
Earnings and Valuation
This table compares Basic Energy Services and Eco-Stim Energy Solutions’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Basic Energy Services||$964.72 million||0.05||-$144.60 million||($3.63)||-0.52|
|Eco-Stim Energy Solutions||$40.71 million||0.00||-$87.87 million||N/A||N/A|
Eco-Stim Energy Solutions has lower revenue, but higher earnings than Basic Energy Services.
This table compares Basic Energy Services and Eco-Stim Energy Solutions’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Basic Energy Services||-15.27%||-41.96%||-13.03%|
|Eco-Stim Energy Solutions||N/A||-132.46%||-60.29%|
Basic Energy Services beats Eco-Stim Energy Solutions on 8 of the 11 factors compared between the two stocks.
About Basic Energy Services
Basic Energy Services, Inc. provides well site services to oil and natural gas drilling and producing companies in the United States. The company operates through Completion and Remedial Services, Well Servicing, Water Logistics, and Contract Drilling segments. The Completion and Remedial Services segment offers pumping services, such as cementing, acidizing, fracturing, nitrogen, and pressure testing; rental and fishing tools; coiled tubing; snubbing services; thru-tubing; underbalanced drilling in low pressure and fluid sensitive reservoirs; and cased-hole wireline services. The Well Servicing segment provides services performed with a mobile well servicing rig and ancillary equipment, such as maintenance work, hoisting tools and equipment required by the operation, and plugging and abandonment services, as well as manufactures and sells workover rigs. As of December 31, 2018, this segment operated a fleet of 310 well servicing rigs. The Water Logistics segment is involved in the transportation of fluids; saltwater production; sale and transportation of fresh and brine water; rental of portable fracturing and test tanks; recycling and treatment of wastewater; operation of fresh water and brine source wells, and non-hazardous wastewater disposal wells; and preparation, construction, and maintenance of access roads, drilling locations, and production facilities. As of December 31, 2017, this segment owned and operated 823 fluid service trucks with an average fluid hauling capacity of up to 150 barrels apiece; and owned 83 saltwater disposal facilities. The Contract Drilling segment employs drilling rigs and related equipment to penetrate the earth to a desired depth and initiate production. This segment owns and operates 11 land drilling rigs. The company was formerly known as Sierra Well Service, Inc. and changed its name to Basic Energy Services, Inc. in 2000. Basic Energy Services, Inc. was founded in 1992 and is headquartered in Fort Worth, Texas.
About Eco-Stim Energy Solutions
Eco-Stim Energy Solutions, Inc. provides oilfield services in the United States. It offers pump down services in the Permian basin. The company is based in Katy, Texas.
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