Cypress Energy Partners, L.P. (NYSE: CELP) and RigNet (NASDAQ:RNET) are both small-cap oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, profitability, earnings, dividends, risk and institutional ownership.
Cypress Energy Partners, L.P. pays an annual dividend of $0.84 per share and has a dividend yield of 12.6%. RigNet does not pay a dividend. Cypress Energy Partners, L.P. pays out -420.0% of its earnings in the form of a dividend.
Institutional & Insider Ownership
0.7% of Cypress Energy Partners, L.P. shares are held by institutional investors. Comparatively, 99.5% of RigNet shares are held by institutional investors. 1.2% of RigNet shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares Cypress Energy Partners, L.P. and RigNet’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Cypress Energy Partners, L.P.||-0.43%||5.84%||0.64%|
This is a summary of current recommendations and price targets for Cypress Energy Partners, L.P. and RigNet, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Cypress Energy Partners, L.P.||0||3||0||0||2.00|
Cypress Energy Partners, L.P. presently has a consensus target price of $8.00, suggesting a potential upside of 19.91%. RigNet has a consensus target price of $20.50, suggesting a potential upside of 25.00%. Given RigNet’s stronger consensus rating and higher possible upside, analysts clearly believe RigNet is more favorable than Cypress Energy Partners, L.P..
Volatility & Risk
Cypress Energy Partners, L.P. has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500. Comparatively, RigNet has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.
Earnings and Valuation
This table compares Cypress Energy Partners, L.P. and RigNet’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Cypress Energy Partners, L.P.||$289.25 million||0.27||$14.26 million||($0.20)||-33.36|
|RigNet||$200.61 million||1.47||$22.97 million||($0.65)||-25.23|
RigNet has higher revenue, but lower earnings than Cypress Energy Partners, L.P.. Cypress Energy Partners, L.P. is trading at a lower price-to-earnings ratio than RigNet, indicating that it is currently the more affordable of the two stocks.
Cypress Energy Partners, L.P. beats RigNet on 8 of the 15 factors compared between the two stocks.
About Cypress Energy Partners, L.P.
Cypress Energy Partners, L.P. is a limited partnership company, which serves energy companies throughout North America. The Company provides independent pipeline inspection and integrity services to producers and pipeline companies and water and environmental services with salt water disposal (SWD) facilities to the United States onshore oil and natural gas producers and trucking companies. It operates through three segments: Pipeline Inspection Services (PIS), which provides independent inspection services to various energy, public utility and pipeline companies in both the United States and Canada; Integrity Services (IS), which provides hydrostatic testing services to natural gas and petroleum companies and pipeline construction companies of newly constructed and existing natural gas and petroleum pipelines, and Water and Environmental Services (W&ES), which provides SWD services to oil and natural gas producers and trucking companies.
RigNet, Inc. (RigNet) provides customized systems and solutions serving customers with data networking and operational requirements. The Company provides voice and data network, video conferencing and monitoring, crew welfare, asset and weather monitoring, and real-time data services. It operates through two segments: Managed Services, and Systems Integration and Automation (SI&A). The Managed Services segment provides remote communications services for offshore and onshore drilling rigs and production facilities, as well as, support vessels and other remote sites. The SI&A segment provides customized solutions for customer telecommunications systems. As of December 31, 2016, the Company provided remote communications and collaborative services to approximately 500 customers reaching approximately 900 remote sites located in approximately 50 countries on six continents. It provides managed remote communications, engineered telecommunications solutions and applications.
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