Carbo Ceramics (CRR) and Tetra Technologies (TTI) Critical Contrast

Carbo Ceramics (NYSE: CRR) and Tetra Technologies (NYSE:TTI) are both small-cap oils/energy companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, profitability, valuation and institutional ownership.

Insider & Institutional Ownership

72.2% of Carbo Ceramics shares are owned by institutional investors. Comparatively, 90.8% of Tetra Technologies shares are owned by institutional investors. 16.2% of Carbo Ceramics shares are owned by company insiders. Comparatively, 3.6% of Tetra Technologies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Carbo Ceramics has a beta of 1.76, suggesting that its stock price is 76% more volatile than the S&P 500. Comparatively, Tetra Technologies has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500.

Earnings and Valuation

This table compares Carbo Ceramics and Tetra Technologies’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Carbo Ceramics $127.54 million 1.49 -$64.41 million ($4.69) -1.49
Tetra Technologies $726.15 million 0.43 $84.62 million ($0.61) -4.43

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

Profitability

This table compares Carbo Ceramics and Tetra Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Carbo Ceramics -79.49% -15.58% -13.10%
Tetra Technologies -8.27% -9.56% -2.76%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Carbo Ceramics and Tetra Technologies, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Carbo Ceramics 1 4 1 0 2.00
Tetra Technologies 0 4 8 0 2.67

Carbo Ceramics presently has a consensus target price of $11.00, suggesting a potential upside of 57.37%. Tetra Technologies has a consensus target price of $5.19, suggesting a potential upside of 92.13%. Given Tetra Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe Tetra Technologies is more favorable than Carbo Ceramics.

Summary

Tetra Technologies beats Carbo Ceramics on 10 of the 13 factors compared between the two stocks.

About Carbo Ceramics

CARBO Ceramics Inc. is a technology company that provides products and services to the global oil and gas and industrial markets. The Company operates through two segments: Oilfield Technologies and Services, and Environmental Products and Services. The Company’s oilfield technologies and services segment includes the manufacturing and selling of proppant products for use primarily in the hydraulic fracturing of oil and natural gas wells, Fracpro software for the design of fracture treatments, and StrataGen consulting services for the optimizing of well completions. The Company’s environmental products and services segment is intended to protect operators’ assets, minimize environmental risks, and lower lease operating expense (LOE). The Company, through Asset Guard Products Inc. (AGPI), provides spill prevention, containment and countermeasure systems for the oil and gas industry. The Company manufactures various ceramic proppants.

About Tetra Technologies

TETRA Technologies, Inc. is an oil and gas services company. The Company focuses on completion fluids and associated products and services, water management, production well testing, offshore rig cooling, compression services and equipment, and offshore services, such as decommissioning and diving. It is composed of five segments organized into four divisions: Fluids, Production Testing, Compression and Offshore. The Fluids division manufactures and markets clear brine fluids, additives and associated products and services to the oil and gas industry. Its Production Testing division provides frac flowback services, production well testing services, offshore rig cooling and other associated services in various oil and gas producing regions. The Compression division provides compression services and equipment for natural gas and oil production, gathering, transportation, processing and storage. The Offshore division consists of two operating segments: Offshore Services and Maritech.

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