Emerge Energy Services (EMES) versus Its Competitors Critical Analysis

Emerge Energy Services (NYSE: EMES) is one of 56 public companies in the “Oil Related Services and Equipment” industry, but how does it weigh in compared to its rivals? We will compare Emerge Energy Services to related businesses based on the strength of its analyst recommendations, profitability, valuation, risk, institutional ownership, earnings and dividends.

Insider and Institutional Ownership

29.9% of Emerge Energy Services shares are held by institutional investors. Comparatively, 64.3% of shares of all “Oil Related Services and Equipment” companies are held by institutional investors. 12.4% of shares of all “Oil Related Services and Equipment” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Emerge Energy Services and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Emerge Energy Services -10.94% -69.72% -11.36%
Emerge Energy Services Competitors -14.24% -6.38% -3.97%

Valuation and Earnings

This table compares Emerge Energy Services and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Emerge Energy Services $128.40 million -$72.77 million -6.40
Emerge Energy Services Competitors $2.00 billion -$345.71 million -696.48

Emerge Energy Services’ rivals have higher revenue, but lower earnings than Emerge Energy Services. Emerge Energy Services is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Volatility & Risk

Emerge Energy Services has a beta of 1.55, meaning that its share price is 55% more volatile than the S&P 500. Comparatively, Emerge Energy Services’ rivals have a beta of 1.61, meaning that their average share price is 61% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Emerge Energy Services and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Emerge Energy Services 0 4 4 0 2.50
Emerge Energy Services Competitors 405 2076 2922 114 2.50

Emerge Energy Services currently has a consensus price target of $17.00, suggesting a potential upside of 123.10%. As a group, “Oil Related Services and Equipment” companies have a potential upside of 20.29%. Given Emerge Energy Services’ stronger consensus rating and higher possible upside, analysts plainly believe Emerge Energy Services is more favorable than its rivals.

Summary

Emerge Energy Services rivals beat Emerge Energy Services on 8 of the 12 factors compared.

About Emerge Energy Services

Emerge Energy Services LP owns, operates, acquires and develops a portfolio of energy service assets. The Company operates through Sand segment. The Company conducts its Sand operations through its subsidiary, Superior Silica Sands LLC (SSS). The Company’s Sand business mines, processes and distributes silica sand, an input for the hydraulic fracturing of oil and gas wells. As of December 31, 2016, its Wisconsin facilities consisted of three dry plants located in Arland, Barron and New Auburn, Wisconsin, with a total permitted capacity of 6.3 million finished tons per year, and five wet plants and mine complexes. As of December 31, 2016, its dry plant in Kosse, Texas, had a capacity of 600,000 tons per year that is supplied by a separate mine and wet plant that processes local Texas sand. As of December 31, 2016, the Company also had 14 transload facilities located throughout North America in the basins where it delivers its sand, as well as a fleet of 5,573 railcars.

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