Franks International (NYSE: FI) and Newpark Resources (NYSE:NR) are both small-cap oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Institutional & Insider Ownership

31.5% of Franks International shares are held by institutional investors. 77.9% of Franks International shares are held by company insiders. Comparatively, 4.9% of Newpark Resources shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Franks International has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500. Comparatively, Newpark Resources has a beta of 1.58, suggesting that its stock price is 58% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Franks International and Newpark Resources, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Franks International 3 9 1 0 1.85
Newpark Resources 0 1 2 0 2.67

Franks International presently has a consensus target price of $7.61, suggesting a potential upside of 5.71%. Newpark Resources has a consensus target price of $10.00, suggesting a potential upside of 9.29%. Given Newpark Resources’ stronger consensus rating and higher probable upside, analysts plainly believe Newpark Resources is more favorable than Franks International.

Profitability

This table compares Franks International and Newpark Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Franks International -26.21% -9.25% -7.80%
Newpark Resources 0.48% -0.29% -0.17%

Valuation and Earnings

This table compares Franks International and Newpark Resources’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Franks International $487.53 million 3.29 -$135.33 million ($0.53) -13.58
Newpark Resources $471.50 million 1.67 -$40.71 million $0.04 228.81

Newpark Resources has lower revenue, but higher earnings than Franks International. Franks International is trading at a lower price-to-earnings ratio than Newpark Resources, indicating that it is currently the more affordable of the two stocks.

Dividends

Franks International pays an annual dividend of $0.30 per share and has a dividend yield of 4.2%. Newpark Resources does not pay a dividend. Franks International pays out -56.6% of its earnings in the form of a dividend.

Summary

Newpark Resources beats Franks International on 10 of the 16 factors compared between the two stocks.

Franks International Company Profile

Frank’s International N.V. (FINV) is a provider of engineered tubular services, tubular fabrication and specialty well construction and well intervention solutions to the oil and gas industry. The Company operates through four business segments: International Services, U. S. Services, Tubular Sales and Blackhawk. As of December 31, 2016, the International Services segment provided tubular services in international offshore markets and in several onshore international regions in approximately 60 countries on six continents. The U.S. Services segment provides tubular services. The Blackhawk segment provides well construction and well intervention rental equipment, services and products, in addition to the cementing tool expertise, in the United States and Mexican Gulf of Mexico, onshore United States and other select international locations.

Newpark Resources Company Profile

Newpark Resources, Inc. is a supplier providing products and services primarily to the oil and gas exploration and production (E&P) industry. The Company’s segments include Fluids Systems, and Mats and Integrated Services. The Fluids Systems segment provides drilling fluids products and technical services to customers in the North America; Europe, the Middle East and Africa; Latin America, and Asia Pacific regions. The Mats and Integrated Services segment provides composite mat rentals, as well as location construction and related site services, to customers at well, production, transportation and refinery locations in the United States. It manufactures and sells composite mats to customers outside of the United States, and to domestic customers outside of the oil and gas exploration market. The Fluids Systems segment offers customized solutions for technical drilling projects involving subsurface conditions, such as horizontal, directional, geologically deep or deep water drilling.

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