Western Energy Services (OTCMKTS:WEEEF – Get Free Report) and Flotek Industries (NYSE:FTK – Get Free Report) are both small-cap energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, risk, profitability and valuation.
Insider & Institutional Ownership
10.9% of Flotek Industries shares are owned by institutional investors. 50.0% of Western Energy Services shares are owned by company insiders. Comparatively, 3.0% of Flotek Industries shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Western Energy Services and Flotek Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Western Energy Services | -3.02% | -2.24% | -1.56% |
| Flotek Industries | 14.48% | 22.62% | 12.96% |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Western Energy Services | $162.82 million | 0.32 | -$5.22 million | ($0.14) | -11.00 |
| Flotek Industries | $187.02 million | 2.82 | $10.50 million | $0.89 | 19.73 |
Flotek Industries has higher revenue and earnings than Western Energy Services. Western Energy Services is trading at a lower price-to-earnings ratio than Flotek Industries, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Western Energy Services and Flotek Industries, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Western Energy Services | 0 | 0 | 0 | 0 | 0.00 |
| Flotek Industries | 0 | 1 | 2 | 1 | 3.00 |
Flotek Industries has a consensus target price of $19.50, indicating a potential upside of 11.05%. Given Flotek Industries’ stronger consensus rating and higher probable upside, analysts plainly believe Flotek Industries is more favorable than Western Energy Services.
Risk & Volatility
Western Energy Services has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500. Comparatively, Flotek Industries has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500.
Summary
Flotek Industries beats Western Energy Services on 14 of the 15 factors compared between the two stocks.
About Western Energy Services
Western Energy Services Corp. operates as an oilfield service company in Canada and the United States. It operates through Contract Drilling and Production Services segments. The Contract Drilling segment provides contract drilling services using drilling rigs and auxiliary equipment. The Production Services segment offers well servicing rig and related equipment, as well as rental equipment services. Western Energy Services Corp. is headquartered in Calgary, Canada.
About Flotek Industries
Flotek Industries, Inc. operates as a technology-driven green chemistry and data company that serves customers across industrial and commercial markets in the United States, the United Arab Emirates, and internationally. It operates through two segments: Chemistry Technologies (CT) and Data Analytics (DA). The CT segment designs, develops, manufactures, packages, distributes, delivers, and markets green specialty chemicals that enhance the profitability of hydrocarbon producers, as well as green specialty chemistries, and logistics and technology services. This segment primarily serves integrated oil and gas, oilfield services, independent oil and gas, national and state-owned oil, geothermal energy, solar energy, and alternative energy companies. The DA segment designs, develops, produces, sells, and supports equipment and services that create and provide valuable information on the composition and properties of energy customers' hydrocarbon fluids. It sells its products directly through a mix of in-house sales professionals, as well as contractual agency agreements. Flotek Industries, Inc. was incorporated in 1985 and is headquartered in Houston, Texas.
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