Enerflex (NYSE:EFXT) and WBI (NYSE:WBI) Financial Analysis

WBI (NYSE:WBI) and Enerflex (NYSE:EFXT) are both mid-cap energy companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, profitability, valuation and risk.

Insider & Institutional Ownership

46.5% of Enerflex shares are held by institutional investors. 50.6% of WBI shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for WBI and Enerflex, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WBI	0	2	4	1	2.86
Enerflex	1	2	5	0	2.50

WBI currently has a consensus price target of $36.71, suggesting a potential upside of 13.50%. Enerflex has a consensus price target of $35.17, suggesting a potential upside of 64.58%. Given Enerflex’s higher possible upside, analysts clearly believe Enerflex is more favorable than WBI.

Profitability

This table compares WBI and Enerflex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WBI	0.54%	0.85%	0.41%
Enerflex	2.06%	11.76%	4.84%

Earnings and Valuation

This table compares WBI and Enerflex”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WBI	$525.55 million	7.60	$11.89 million	$0.08	404.32
Enerflex	$2.57 billion	1.01	$64.00 million	$0.43	49.69

Enerflex has higher revenue and earnings than WBI. Enerflex is trading at a lower price-to-earnings ratio than WBI, indicating that it is currently the more affordable of the two stocks.

Dividends

WBI pays an annual dividend of $0.20 per share and has a dividend yield of 0.6%. Enerflex pays an annual dividend of $0.12 per share and has a dividend yield of 0.6%. WBI pays out 250.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Enerflex pays out 27.9% of its earnings in the form of a dividend. Enerflex has raised its dividend for 1 consecutive years.

Summary

Enerflex beats WBI on 11 of the 17 factors compared between the two stocks.

About WBI

WaterBridge Infrastructure LLC is an integrated, pure-play water infrastructure company. WaterBridge Infrastructure LLC is based in HOUSTON.

About Enerflex

Enerflex Ltd. offers energy infrastructure and energy transition solutions to natural gas markets in North America, Latin America, and the Eastern Hemisphere. The company provides natural gas compression infrastructure, processing, and treated water infrastructure under contract to oil and natural gas customers; power generation rental solutions; custom and standard compression packages for reciprocating and screw compressor applications; re-engineering, re-configuration, and re-packaging of compressors for various field applications; integrated turnkey power generation, gas compression, processing facilities, natural gas compression, processing, and electric power solutions; after-market mechanical services and parts distribution, as well as maintenance solutions to the oil and natural gas industry, operations, and overhaul services; and equipment supply, parts supply, and general asset management. It also designs, engineers, manufactures, constructs, and installs modular natural gas processing equipment, low-carbon solutions, cryogenic systems, electric power solutions, and treated water solutions; and engages in the engineering, design, procurement, project management, and construction services for compression, process, treated water, and power generation equipment, as well as after-market service, parts, and operations and maintenance services for gas compression, processing, and treated water facilities in the region. The company was formerly known as Enerflex Systems Income Fund and changed its name to Enerflex Ltd. in January 2010. Enerflex Ltd. was founded in 1980 and is headquartered in Calgary, Canada.