Contrasting Oceaneering International (OII) & Fairmount Santrol Holdings (FMSA)
Oceaneering International (NYSE: OII) and Fairmount Santrol Holdings (NYSE:FMSA) are both oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, institutional ownership, earnings and valuation.
This is a summary of recent recommendations and price targets for Oceaneering International and Fairmount Santrol Holdings, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Fairmount Santrol Holdings||2||7||8||0||2.35|
Oceaneering International presently has a consensus price target of $28.90, indicating a potential upside of 13.65%. Fairmount Santrol Holdings has a consensus price target of $6.94, indicating a potential upside of 40.49%. Given Fairmount Santrol Holdings’ stronger consensus rating and higher possible upside, analysts clearly believe Fairmount Santrol Holdings is more favorable than Oceaneering International.
Oceaneering International pays an annual dividend of $0.60 per share and has a dividend yield of 2.4%. Fairmount Santrol Holdings does not pay a dividend. Oceaneering International pays out -206.9% of its earnings in the form of a dividend.
Insider and Institutional Ownership
99.7% of Oceaneering International shares are held by institutional investors. Comparatively, 84.2% of Fairmount Santrol Holdings shares are held by institutional investors. 0.9% of Oceaneering International shares are held by insiders. Comparatively, 9.8% of Fairmount Santrol Holdings shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Oceaneering International and Fairmount Santrol Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Fairmount Santrol Holdings||-6.11%||-24.37%||-3.68%|
Valuation and Earnings
This table compares Oceaneering International and Fairmount Santrol Holdings’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Oceaneering International||$2.00 billion||1.25||$236.08 million||($0.29)||-87.69|
|Fairmount Santrol Holdings||$681.12 million||1.63||$84.28 million||($0.20)||-24.70|
Oceaneering International has higher revenue and earnings than Fairmount Santrol Holdings. Oceaneering International 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.
Risk & Volatility
Oceaneering International has a beta of 1.7, indicating that its stock price is 70% more volatile than the S&P 500. Comparatively, Fairmount Santrol Holdings has a beta of 2.12, indicating that its stock price is 112% more volatile than the S&P 500.
Oceaneering International beats Fairmount Santrol Holdings on 8 of the 15 factors compared between the two stocks.
Oceaneering International Company Profile
Oceaneering International, Inc. is an oilfield provider of engineered services and products, primarily to the offshore oil and gas industry, with a focus on deepwater applications. The Company’s business segments are contained within two businesses: services and products provided to the oil and gas industry (Oilfield) and all other services and products (Advanced Technologies). Its four business segments within the Oilfield business are Remotely Operated Vehicles (ROVs), Subsea Products, Subsea Projects and Asset Integrity. The services and products it provides to the oil and gas industry include remotely operated vehicles, specialty subsea hardware, engineering and project management, subsea intervention services, including manned diving, survey and positioning services and asset integrity and nondestructive testing services. The Company serves the defense, aerospace and commercial theme park industries.
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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