Analyzing Ranger Energy Services (RNGR) & Fairmount Santrol Holdings (FMSA)

Ranger Energy Services (NYSE: RNGR) and Fairmount Santrol Holdings (NYSE:FMSA) are both small-cap energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, analyst recommendations and profitability.

Analyst Ratings

This is a summary of recent recommendations for Ranger Energy Services and Fairmount Santrol Holdings, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ranger Energy Services 0 3 5 0 2.63
Fairmount Santrol Holdings 1 8 9 0 2.44

Ranger Energy Services currently has a consensus price target of $17.25, indicating a potential upside of 86.49%. Fairmount Santrol Holdings has a consensus price target of $6.31, indicating a potential upside of 23.18%. Given Ranger Energy Services’ stronger consensus rating and higher probable upside, analysts clearly believe Ranger Energy Services is more favorable than Fairmount Santrol Holdings.

Valuation and Earnings

This table compares Ranger Energy Services and Fairmount Santrol Holdings’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Ranger Energy Services $52.80 million 2.68 -$5.00 million ($0.77) -12.01
Fairmount Santrol Holdings $535.01 million 2.14 -$140.19 million $0.06 85.33

Ranger Energy Services has higher revenue, but lower earnings than Fairmount Santrol Holdings. Ranger Energy Services is trading at a lower price-to-earnings ratio than Fairmount Santrol Holdings, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Ranger Energy Services and Fairmount Santrol Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ranger Energy Services -14.29% -14.10% -10.47%
Fairmount Santrol Holdings 1.69% 4.05% 0.86%

Insider & Institutional Ownership

12.1% of Ranger Energy Services shares are held by institutional investors. Comparatively, 84.1% of Fairmount Santrol Holdings shares are held by institutional investors. 9.8% of Fairmount Santrol Holdings shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Fairmount Santrol Holdings beats Ranger Energy Services on 8 of the 12 factors compared between the two stocks.

Ranger Energy Services Company Profile

Ranger Energy Services, Inc. is an independent provider of high-specification (high-spec) well service rigs and associated services in the United States. The Company focuses on unconventional horizontal well completion and production operations. The Company operates through Well Services and Processing Solutions segment. Well Services segment provides high-spec well service rigs and complementary equipment and services in the United States, with a focus on unconventional horizontal well completion, workover and maintenance operations. Processing Solutions segment engages in the rental, installation, commissioning, start-up, operation and maintenance of MRUs, NGL stabilizer units, NGL storage units and related equipment. The Company also offers full transportation, turn-key mobilization services, installation and ongoing operation services in the field. The Company’s turn-key mobilization services include in-bound transportation and site offloading.

Fairmount Santrol Holdings Company Profile

Fairmount Santrol Holdings Inc. is a provider of sand-based proppant solutions. The Company operates through two segments: Proppant Solutions, and Industrial & Recreational (I&R) Products. Its Proppant Solutions segment provides sand-based proppants for use in hydraulic fracturing operations throughout the United States and Canada, Argentina, Mexico, China, northern Europe and the United Arab Emirates. Its I&R segment provides raw, coated, and custom blended sands to the foundry, building products, glass, turf and landscape, and filtration industries in North America. Its asset base includes approximately 800 million tons of proven and probable mineral reserves. As of March 2017, the Company had 10 sand processing facilities with 16.8 million tons of annual sand processing capacity. Its coating facilities include operations in Mexico, Denmark and China, through which it serves international oil and gas markets.

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