Oil States International (OIS) & Dresser-Rand Group (DRC) Critical Review

Oil States International (NYSE: OIS) and Dresser-Rand Group (NYSE:DRC) are both oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Analyst Recommendations

This is a summary of current ratings and price targets for Oil States International and Dresser-Rand Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oil States International 0 10 4 0 2.29
Dresser-Rand Group 0 0 0 0 N/A

Oil States International currently has a consensus price target of $30.82, indicating a potential upside of 6.82%. Given Oil States International’s higher probable upside, research analysts clearly believe Oil States International is more favorable than Dresser-Rand Group.

Profitability

This table compares Oil States International and Dresser-Rand Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Oil States International -8.77% -4.62% -4.05%
Dresser-Rand Group -4.64% -7.65% -2.86%

Earnings and Valuation

This table compares Oil States International and Dresser-Rand Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Oil States International $694.44 million 2.12 -$46.39 million ($1.14) -25.31
Dresser-Rand Group N/A N/A N/A $1.07 79.61

Dresser-Rand Group has lower revenue, but higher earnings than Oil States International. Oil States International is trading at a lower price-to-earnings ratio than Dresser-Rand Group, indicating that it is currently the more affordable of the two stocks.

About Oil States International

Oil States International, Inc., through its subsidiaries, provides specialty products and services to oil and natural gas related companies throughout the world. The Company operates as a technology-focused energy services company. The Company operates through two segments: Offshore Products and Well Site Services. Through Offshore Products segment, the Company provides engineered products and services for offshore oil and natural gas production systems and facilities, as well as certain products and services to the offshore and land-based drilling and completion markets. The Company’s well site services segment includes a range of products and services that are used to drill for, establish and maintain the flow of oil and natural gas from a well throughout its life cycle. The Company operates in active oil and natural gas producing regions, including onshore and offshore the United States, Canada, West Africa, the North Sea, South America and Southeast and Central Asia.

About Dresser-Rand Group

Dresser-Rand Group Inc. is a supplier of custom-engineered rotating equipment solutions for long-life, critical applications in the oil, gas, chemical, petrochemical, process, power generation, military and other industries around the world. The Company operates through two segments: New Units and Aftermarket Parts and Services. New Units segment offers standardized equipment, such as engines and single stage steam turbines. The Company’s Aftermarket Parts and Services segment offer a range of aftermarket parts and services, including replacement parts, field service turnaround, service and repair, operation and maintenance contracts, rotor/spare parts storage, condition monitoring, controls retrofit, site/reliability audits, remote area energy solutions, equipment repair and re-rates, equipment installation, applied technology, long-term service agreements, special coatings/welding, product training, turnkey installation/project management and energy asset management.

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