Critical Survey: NCS Multistage Holdings (NCSM) and Flotek Industries (FTK)

Flotek Industries (NYSE: FTK) and NCS Multistage Holdings (NASDAQ:NCSM) are both small-cap oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Institutional and Insider Ownership

98.2% of Flotek Industries shares are owned by institutional investors. Comparatively, 1.9% of NCS Multistage Holdings shares are owned by institutional investors. 5.5% of Flotek Industries shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Flotek Industries and NCS Multistage Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Flotek Industries -10.49% -2.07% -1.57%
NCS Multistage Holdings N/A N/A N/A

Valuation and Earnings

This table compares Flotek Industries and NCS Multistage Holdings’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Flotek Industries $300.07 million 1.08 $2.51 million ($0.56) -10.05
NCS Multistage Holdings $159.58 million 5.44 $27.57 million N/A N/A

NCS Multistage Holdings has higher revenue, but lower earnings than Flotek Industries.

Analyst Ratings

This is a breakdown of recent recommendations for Flotek Industries and NCS Multistage Holdings, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Flotek Industries 0 0 1 0 3.00
NCS Multistage Holdings 0 1 7 0 2.88

NCS Multistage Holdings has a consensus target price of $29.00, indicating a potential upside of 45.44%. Given NCS Multistage Holdings’ higher possible upside, analysts plainly believe NCS Multistage Holdings is more favorable than Flotek Industries.

Summary

NCS Multistage Holdings beats Flotek Industries on 7 of the 11 factors compared between the two stocks.

Flotek Industries Company Profile

Flotek Industries, Inc. is a technology-driven company. The Company develops and supplies chemistry and services to the oil and gas industries, and compounds to companies that make cleaning products, cosmetics, food and beverages, and other products that are sold in consumer and industrial markets. The Company operates through two segments: Energy Chemistry Technologies (ECT), and Consumer and Industrial Chemistry Technologies (CICT). The ECT segment designs, develops, manufactures, packages and markets chemistries for use in oil and gas well drilling, cementing, completion and stimulation activities. Its ECT segment’s services include Reservoir Characterization, Polymer Conformance and Logistics Management. The CICT segment sources citrus oil domestically and internationally, and processor of citrus oils in the world. The CICT segment designs, develops and manufactures products that are sold to companies in the flavor and fragrance industries and specialty chemical industry.

NCS Multistage Holdings Company Profile

NCS Multistage Holdings, Inc. is a provider of engineered products and support services for oil and natural gas well completions and field development strategies. The Company’s products and services include Multistage Unlimited, casing-installed sliding sleeves, downhole frac isolation assembly, AirLock casing buoyancy system and liner hanger systems. The Company provides products and services primarily to exploration and production (E&P) companies for use in onshore wells, predominantly wells that have been drilled with horizontal laterals in unconventional oil and natural gas formations. The Company’s products and services are utilized in oil and natural gas basins throughout North America and in selected international markets, including Argentina, China and Russia.

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