Liberty Energy (NYSE:LBRT – Get Free Report) and Drilling Tools International (NASDAQ:DTI – Get Free Report) are both energy companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.
Analyst Ratings
This is a summary of recent ratings and target prices for Liberty Energy and Drilling Tools International, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Liberty Energy | 0 | 6 | 8 | 0 | 2.57 |
| Drilling Tools International | 2 | 1 | 0 | 0 | 1.33 |
Liberty Energy presently has a consensus price target of $26.42, indicating a potential upside of 104.31%. Drilling Tools International has a consensus price target of $2.80, indicating a potential upside of 62.79%. Given Liberty Energy’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Liberty Energy is more favorable than Drilling Tools International.
Valuation & Earnings
This table compares Liberty Energy and Drilling Tools International”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Liberty Energy | $4.01 billion | 0.53 | $147.87 million | $0.24 | 53.88 |
| Drilling Tools International | $155.18 million | 0.39 | -$3.76 million | ($0.13) | -13.23 |
Liberty Energy has higher revenue and earnings than Drilling Tools International. Drilling Tools International is trading at a lower price-to-earnings ratio than Liberty Energy, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Liberty Energy and Drilling Tools International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Liberty Energy | 0.91% | 2.13% | 0.99% |
| Drilling Tools International | -3.06% | -0.40% | -0.22% |
Insider & Institutional Ownership
98.2% of Liberty Energy shares are owned by institutional investors. Comparatively, 2.8% of Drilling Tools International shares are owned by institutional investors. 2.0% of Liberty Energy shares are owned by company insiders. Comparatively, 17.1% of Drilling Tools International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Risk and Volatility
Liberty Energy has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500. Comparatively, Drilling Tools International has a beta of -0.56, meaning that its stock price is 156% less volatile than the S&P 500.
Summary
Liberty Energy beats Drilling Tools International on 13 of the 14 factors compared between the two stocks.
About Liberty Energy
Liberty Energy Inc. is a Denver-based oilfield services company that supports onshore oil and natural gas producers, primarily in the United States. Founded in 2011 as Liberty Oilfield Services, the company adopted the Liberty Energy name in 2022. Its core business is hydraulic fracturing, a well-completion technique used to extract oil and natural gas. Liberty also provides related services and equipment, including wireline operations, proppant and logistics solutions, and technologies designed to support wellsite operations.
About Drilling Tools International
Drilling Tools International Corporation (NASDAQ: DTI) provides rental tools and related services to the oil and gas drilling industry. The company supplies downhole equipment used in drilling, completion and production operations, serving exploration and production companies, drilling contractors and oilfield service providers. Its product offering includes drill pipe, drill collars, heavy-weight drill pipe, stabilizers, subs, mud motors, drilling jars and other specialized downhole tools. Drilling Tools International also provides equipment inspection, maintenance, repair, refurbishment and machining services intended to support the safe and efficient use of drilling equipment.
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