Select Water Solutions (WTTR) versus Its Rivals Head to Head Review

Select Water Solutions (NYSE:WTTR) is one of 177 public companies in the “Energy Equipment & Services” industry, but how does it compare to its peers? We will compare Select Water Solutions to similar businesses based on the strength of its analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.

Profitability

This table compares Select Water Solutions and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Select Water Solutions	2.24%	3.11%	1.92%
Select Water Solutions Competitors	-11.26%	7.32%	1.42%

Risk and Volatility

Select Water Solutions has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500. Comparatively, Select Water Solutions’ peers have a beta of 0.84, meaning that their average share price is 16% less volatile than the S&P 500.

Institutional & Insider Ownership

81.7% of Select Water Solutions shares are held by institutional investors. Comparatively, 48.9% of shares of all “Energy Equipment & Services” companies are held by institutional investors. 6.2% of Select Water Solutions shares are held by company insiders. Comparatively, 12.3% of shares of all “Energy Equipment & Services” companies are held 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.

Analyst Ratings

This is a summary of recent ratings for Select Water Solutions and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Select Water Solutions	0	3	7	0	2.70
Select Water Solutions Competitors	1660	6802	8588	484	2.45

Select Water Solutions currently has a consensus target price of $24.57, suggesting a potential upside of 25.26%. As a group, “Energy Equipment & Services” companies have a potential upside of 22.31%. Given Select Water Solutions’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Select Water Solutions is more favorable than its peers.

Valuation and Earnings

This table compares Select Water Solutions and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Select Water Solutions	$1.43 billion	$21.22 million	70.06
Select Water Solutions Competitors	$3.26 billion	$29.73 million	23.19

Select Water Solutions’ peers have higher revenue and earnings than Select Water Solutions. Select Water Solutions is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Dividends

Select Water Solutions pays an annual dividend of $0.28 per share and has a dividend yield of 1.4%. Select Water Solutions pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Energy Equipment & Services” companies pay a dividend yield of -1.9% and pay out -40.4% of their earnings in the form of a dividend. Select Water Solutions has increased its dividend for 2 consecutive years.

Summary

Select Water Solutions beats its peers on 9 of the 15 factors compared.

Select Water Solutions Company Profile

Select Water Solutions, Inc., together with its subsidiaries, provides water management and chemical solutions to the energy industry in the United States. The company operates through three segments: Water Services, Water Infrastructure, and Chemical Technologies. The Water Services segment provides water-related services, including water sourcing, water transfer, flowback and well testing, water containment, fluids hauling, water monitoring, and water network automation; technology solutions comprising hydrographic mapping, water volume and quality monitoring, remote pit and tank monitoring, leak detection, asset and fuel tracking, and automated-equipment services, as well as various surface rental equipment and workforce accommodation services. The Water Infrastructure segment engages in the recycling, gathering, transferring, and disposal of water through a network of permanent pipeline infrastructure, semi-permanent pipeline infrastructure, water recycling facilities, earthen pits, water sources, and SWDs; provides solids management services; and develops, builds, and operates semi-permanent and permanent infrastructure solutions. The Chemical Technologies segment provides technical solutions, products, and services related to chemical applications in the oil and gas industry. This segment develops, manufactures, and manages logistics; and provides chemicals used in hydraulic fracturing, stimulation, cementing, and well completions for pressure pumpers and oil and gas producers, as well as offers production chemical solutions for underperforming wells, corrosion and scale monitoring, chemical inventory management, well failure analysis, and lab services. It primarily serves oil and gas producers. The company was formerly known as Select Energy Services, Inc. and changed its name to Select Water Solutions, Inc. in May 2023. Select Water Solutions, Inc. was incorporated in 2016 and is headquartered in Houston, Texas.