Flotek Industries (NYSE:FTK) and ProPetro (NYSE:PUMP) Head to Head Review

ProPetro (NYSE:PUMP) and Flotek Industries (NYSE:FTK) are both small-cap energy companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, dividends, institutional ownership, risk, earnings, profitability and analyst recommendations.

Institutional & Insider Ownership

84.7% of ProPetro shares are owned by institutional investors. Comparatively, 10.9% of Flotek Industries shares are owned by institutional investors. 1.6% of ProPetro shares are owned by insiders. Comparatively, 3.0% of Flotek Industries shares are owned 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.

Volatility and Risk

ProPetro has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500. Comparatively, Flotek Industries has a beta of 1.44, meaning that its stock price is 44% more volatile than the S&P 500.

Profitability

This table compares ProPetro and Flotek Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ProPetro	-1.31%	-0.06%	-0.04%
Flotek Industries	14.48%	22.62%	12.96%

Analyst Recommendations

This is a breakdown of current recommendations for ProPetro and Flotek Industries, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ProPetro	1	4	4	0	2.33
Flotek Industries	0	2	3	0	2.60

ProPetro currently has a consensus price target of $12.67, suggesting a potential upside of 5.34%. Flotek Industries has a consensus price target of $21.33, suggesting a potential upside of 23.11%. Given Flotek Industries’ stronger consensus rating and higher probable upside, analysts plainly believe Flotek Industries is more favorable than ProPetro.

Valuation & Earnings

This table compares ProPetro and Flotek Industries”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ProPetro	$1.44 billion	0.87	-$137.86 million	($0.17)	-70.73
Flotek Industries	$187.02 million	2.79	$10.50 million	$0.89	19.47

Flotek Industries has lower revenue, but higher earnings than ProPetro. ProPetro is trading at a lower price-to-earnings ratio than Flotek Industries, indicating that it is currently the more affordable of the two stocks.

Summary

Flotek Industries beats ProPetro on 11 of the 14 factors compared between the two stocks.

About ProPetro

ProPetro Holding Corp. operates as an integrated oilfield services company. The company provides hydraulic fracturing, wireline, cementing, and other complementary oilfield completion services to upstream oil and gas companies in the Permian Basin. ProPetro Holding Corp. was founded in 2007 and is headquartered in Midland, Texas.

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.