Gulf Island Fabrication (NASDAQ:GIFI – Get Free Report) and USA Compression Partners (NYSE:USAC – Get Free Report) are both energy companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, risk, institutional ownership, earnings and analyst recommendations.
Valuation & Earnings
This table compares Gulf Island Fabrication and USA Compression Partners”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gulf Island Fabrication | $166.77 million | 1.15 | $14.74 million | $0.55 | 21.82 |
| USA Compression Partners | $950.45 million | 3.43 | $99.57 million | $0.80 | 33.19 |
Profitability
This table compares Gulf Island Fabrication and USA Compression Partners’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gulf Island Fabrication | 5.46% | 11.60% | 7.92% |
| USA Compression Partners | 10.99% | -76.84% | 4.23% |
Risk and Volatility
Gulf Island Fabrication has a beta of 0.41, indicating that its stock price is 59% less volatile than the S&P 500. Comparatively, USA Compression Partners has a beta of 0.23, indicating that its stock price is 77% less volatile than the S&P 500.
Institutional and Insider Ownership
46.4% of Gulf Island Fabrication shares are held by institutional investors. Comparatively, 47.8% of USA Compression Partners shares are held by institutional investors. 20.1% of Gulf Island Fabrication shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Dividends
Gulf Island Fabrication pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. USA Compression Partners pays an annual dividend of $2.10 per share and has a dividend yield of 7.9%. Gulf Island Fabrication pays out 7.3% of its earnings in the form of a dividend. USA Compression Partners pays out 262.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Analyst Recommendations
This is a breakdown of recent ratings for Gulf Island Fabrication and USA Compression Partners, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gulf Island Fabrication | 0 | 1 | 0 | 0 | 2.00 |
| USA Compression Partners | 1 | 3 | 0 | 0 | 1.75 |
USA Compression Partners has a consensus target price of $25.67, indicating a potential downside of 3.33%. Given USA Compression Partners’ higher probable upside, analysts plainly believe USA Compression Partners is more favorable than Gulf Island Fabrication.
Summary
USA Compression Partners beats Gulf Island Fabrication on 9 of the 15 factors compared between the two stocks.
About Gulf Island Fabrication
Gulf Island Fabrication, Inc., together with its subsidiaries, operates as a fabricator of steel structures and modules in the United States. It operates through Services, Fabrication, and Shipyard divisions. The company provides maintenance, repair, construction, scaffolding, coatings, welding enclosures, and other specialty services on offshore platforms, inland structures, and industrial facilities; services required to connect production equipment and service modules, and equipment on offshore platforms; project management and commissioning services; hookup services; and civil construction and staffing services to the industrial and energy sectors, as well as undertakes municipal and drainage projects, including pump stations, levee reinforcement, bulkheads, and other public works. It also fabricates modules, skids, and piping systems for onshore refining, petrochemical, liquified natural gas (LNG), industrial, and offshore facilities; foundations, secondary steel components, and support structures for alternative energy developments and coastal mooring facilities; offshore production platforms and associated structures, including jacket foundations, piles, and topsides for fixed production and utility platforms, as well as hulls and topsides for floating production and utility platforms; and other complex steel structures and components. In addition, the company fabricates newbuild marine vessels and provides marine repair and maintenance services. The company serves international energy producers; refining, petrochemical, LNG, industrial, and power operators; and engineering, procurement, and construction companies. Gulf Island Fabrication, Inc. was incorporated in 1985 and is headquartered in The Woodlands, Texas.
About USA Compression Partners
USA Compression Partners, LP provides compression services under term contracts with customers in the natural gas and crude oil industries in the United States. The company engineers, designs, operates, services, and repairs its compression units; and maintains related support inventory and equipment. It also provides compression services in various shale plays, including the Utica, Marcellus, Permian Basin, Delaware Basin, Eagle Ford, Mississippi Lime, Granite Wash, Woodford, Barnett, Haynesville, Niobrara, and Fayetteville shales. As of December 31, 2017, the company had approximately 1,799,781 horsepower in its fleet. It serves oil companies; and independent producers, processors, gatherers, and transporters of natural gas and crude oil. USA Compression GP, LLC operates as the general partner of USA Compression Partners, LP. The company was formerly known as Compression Holdings, LP, and changed its name to USA Compression Partners, LP in June 2011. USA Compression Partners, LP was founded in 1998 and is headquartered in Austin, Texas.
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