Reviewing RigNet (RNET) and Keane Group (FRAC)

RigNet (NASDAQ: RNET) and Keane Group (NYSE:FRAC) are both small-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, risk, valuation, dividends, earnings and analyst recommendations.

Valuation & Earnings

This table compares RigNet and Keane Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
RigNet $220.62 million 1.36 -$11.50 million ($0.79) -20.89
Keane Group $420.57 million 4.16 -$187.08 million N/A N/A

RigNet has higher earnings, but lower revenue than Keane Group.

Analyst Recommendations

This is a summary of current recommendations and price targets for RigNet and Keane Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RigNet 0 2 1 0 2.33
Keane Group 0 9 10 0 2.53

RigNet presently has a consensus price target of $19.33, indicating a potential upside of 17.17%. Keane Group has a consensus price target of $20.78, indicating a potential upside of 32.85%. Given Keane Group’s stronger consensus rating and higher probable upside, analysts clearly believe Keane Group is more favorable than RigNet.

Institutional & Insider Ownership

92.3% of RigNet shares are owned by institutional investors. Comparatively, 38.3% of Keane Group shares are owned by institutional investors. 1.2% of RigNet shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares RigNet and Keane Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RigNet -7.05% -11.13% -5.49%
Keane Group -9.90% -19.19% -8.80%

Summary

RigNet beats Keane Group on 6 of the 11 factors compared between the two stocks.

RigNet Company Profile

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.

Keane Group Company Profile

Keane Group, Inc. is provider of integrated well completion services in the United States, with a focus on demanding completion solutions. The Company’s segments include Completion Services, which comprises hydraulic fracturing and wireline divisions, and Other Services, which consists of coiled tubing, cementing and drilling divisions. It provides hydraulic fracturing and wireline services pursuant to contractual arrangements, such as term contracts and pricing agreements, or on a spot market basis. It provides certain complementary services such as coiled tubing, cementing and drilling pursuant to contractual arrangements, such as term contracts on a spot basis. Its primary services include horizontal and vertical fracturing, wireline perforation and logging and engineered solutions, as well as other value-added service offerings. As of July 3, 2017, the Company had approximately 1.2 million hydraulic horsepower spread across 23 hydraulic fracturing fleets and 31 wireline trucks.

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