Contrasting Natural Gas Services Group (NGS) & KLX Energy Services (KLXE)

Natural Gas Services Group (NYSE:NGS) and KLX Energy Services (NASDAQ:KLXE) are both small-cap oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, earnings, valuation and dividends.

Profitability

This table compares Natural Gas Services Group and KLX Energy Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Natural Gas Services Group 0.65% 0.41% 0.35%
KLX Energy Services N/A N/A N/A

Valuation & Earnings

This table compares Natural Gas Services Group and KLX Energy Services’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Natural Gas Services Group $65.48 million 3.27 $430,000.00 $0.08 202.63
KLX Energy Services $495.30 million 1.25 $14.40 million $2.81 9.56

KLX Energy Services has higher revenue and earnings than Natural Gas Services Group. KLX Energy Services is trading at a lower price-to-earnings ratio than Natural Gas Services Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and recommmendations for Natural Gas Services Group and KLX Energy Services, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Natural Gas Services Group 0 0 3 0 3.00
KLX Energy Services 0 0 3 0 3.00

Natural Gas Services Group presently has a consensus price target of $54.00, suggesting a potential upside of 233.13%. KLX Energy Services has a consensus price target of $30.00, suggesting a potential upside of 11.73%. Given Natural Gas Services Group’s higher probable upside, equities analysts clearly believe Natural Gas Services Group is more favorable than KLX Energy Services.

Institutional and Insider Ownership

91.2% of Natural Gas Services Group shares are owned by institutional investors. Comparatively, 89.1% of KLX Energy Services shares are owned by institutional investors. 6.6% of Natural Gas Services Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Natural Gas Services Group beats KLX Energy Services on 8 of the 11 factors compared between the two stocks.

About Natural Gas Services Group

Natural Gas Services Group, Inc. provides small to medium horsepower compression equipment to the natural gas industry in the United States. The company engages in the rental of small to medium horsepower compression equipment to non-conventional natural gas and oil production businesses. As of December 31, 2018, it had 2,572 natural gas compressors in its rental fleet totaling 398,765 horsepower. The company also assembles compressor components into compressor units for rent or sale; engineers and fabricates natural gas compressors; and designs and manufactures a line of reciprocating compressor frames, cylinders, and parts. In addition, it is involved in the design, fabrication, sale, installation, and service of flare stacks and related ignition and control devices for the onshore and offshore incineration of gas compounds, such as hydrogen sulfide, carbon dioxide, natural gas, and liquefied petroleum gases. Further, the company offers customer support services for its compressor and flare sales business; exchanges and rebuilds program for screw compressors; and maintains an inventory of new and used compressors. Natural Gas Services Group, Inc. was founded in 1998 and is headquartered in Midland, Texas.

About KLX Energy Services

KLX Energy Services Holdings, Inc. provides completion, intervention, and production services and products to the onshore oil and gas producing regions of the United States. It offers a range of technical services, and related tools and equipment to companies engaged in the exploration and development of North American onshore conventional and unconventional oil and natural gas reserves. The company was incorporated in 2018 and is headquartered in Wellington, Florida.

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