Critical Comparison: Solaris Oilfield Infrastructure (NYSE:SOI) vs. STEP Energy Services (OTCMKTS:SNVVF)

Solaris Oilfield Infrastructure (NYSE:SOI) and STEP Energy Services (OTCMKTS:SNVVF) are both oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Valuation and Earnings

This table compares Solaris Oilfield Infrastructure and STEP Energy Services’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Solaris Oilfield Infrastructure	$278.12 million	1.43	$24.34 million	$0.68	13.32
STEP Energy Services	N/A	N/A	N/A	N/A	N/A

Solaris Oilfield Infrastructure has higher revenue and earnings than STEP Energy Services.

Profitability

This table compares Solaris Oilfield Infrastructure and STEP Energy Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Solaris Oilfield Infrastructure	7.58%	10.82%	7.13%
STEP Energy Services	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent ratings and price targets for Solaris Oilfield Infrastructure and STEP Energy Services, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solaris Oilfield Infrastructure	0	2	1	0	2.33
STEP Energy Services	0	0	0	0	N/A

Solaris Oilfield Infrastructure presently has a consensus target price of $12.00, indicating a potential upside of 32.45%. STEP Energy Services has a consensus target price of $1.45, indicating a potential downside of 48.94%. Given Solaris Oilfield Infrastructure’s higher probable upside, equities research analysts clearly believe Solaris Oilfield Infrastructure is more favorable than STEP Energy Services.

Institutional and Insider Ownership

67.4% of Solaris Oilfield Infrastructure shares are held by institutional investors. 34.7% of Solaris Oilfield Infrastructure shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Solaris Oilfield Infrastructure beats STEP Energy Services on 8 of the 8 factors compared between the two stocks.

About Solaris Oilfield Infrastructure

Solaris Oilfield Infrastructure, Inc. designs and manufactures specialized equipment for oil and natural gas operators in the United States. The company provides mobile proppant and fluid management systems, as well as last mile logistics management services. It offers systems, mobilization, and last mile logistics services that are used to unload, store, and deliver proppant, water and/or chemicals at oil and natural gas well sites. The company is also involved in the transloading and storage of proppant or railcars at its transloading facility. In addition, it develops Railtronix, an inventory management software; and all-electric equipment that automates the low pressure section of oil and gas well completion sites. The company serves exploration and production, and oilfield services industries. Solaris Oilfield Infrastructure, Inc. was founded in 2014 and is headquartered in Houston, Texas.

About STEP Energy Services

STEP Energy Services Ltd., an energy services company, provides integrated coiled tubing, fluid and nitrogen pumping, and hydraulic fracturing to service oil and natural gas industry in Canada and the United States. It also provides fluid pumping services for coiled tubing operations and involved in standalone projects; pipeline commissioning and maintenance services; fracturing logistics services; and laboratory services. In addition, the company offers pipeline, facility maintenance, pipeline pigging, and purging services. STEP Energy Services Ltd. was incorporated in 2011 and is headquartered in Calgary, Canada.