Head to Head Comparison: USA Compression Partners, (USAC) vs. Emerge Energy Services (EMES)

USA Compression Partners, (NYSE: USAC) and Emerge Energy Services (NYSE:EMES) are both small-cap oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, risk and valuation.

Profitability

This table compares USA Compression Partners, and Emerge Energy Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
USA Compression Partners, 1.20% 1.38% 0.65%
Emerge Energy Services -4.15% -33.77% -5.07%

Dividends

USA Compression Partners, pays an annual dividend of $2.10 per share and has a dividend yield of 12.3%. Emerge Energy Services does not pay a dividend. USA Compression Partners, pays out 7,000.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Risk and Volatility

USA Compression Partners, has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500. Comparatively, Emerge Energy Services has a beta of 1.61, indicating that its share price is 61% more volatile than the S&P 500.

Institutional and Insider Ownership

30.9% of Emerge Energy Services shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares USA Compression Partners, and Emerge Energy Services’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
USA Compression Partners, $268.09 million 3.92 $129.99 million $0.03 569.33
Emerge Energy Services $231.85 million 1.03 -$26.10 million ($1.14) -6.93

USA Compression Partners, has higher revenue and earnings than Emerge Energy Services. Emerge Energy Services is trading at a lower price-to-earnings ratio than USA Compression Partners,, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations for USA Compression Partners, and Emerge Energy Services, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
USA Compression Partners, 0 2 1 0 2.33
Emerge Energy Services 0 4 4 0 2.50

USA Compression Partners, currently has a consensus price target of $18.00, indicating a potential upside of 5.39%. Emerge Energy Services has a consensus price target of $17.00, indicating a potential upside of 115.19%. Given Emerge Energy Services’ stronger consensus rating and higher possible upside, analysts clearly believe Emerge Energy Services is more favorable than USA Compression Partners,.

Summary

USA Compression Partners, beats Emerge Energy Services on 8 of the 14 factors compared between the two stocks.

USA Compression Partners, Company Profile

USA Compression Partners, LP is an independent provider of compression services in the United States. The Company provides compression services to its customers primarily in connection with infrastructure applications, including both allowing for the processing and transportation of natural gas through the domestic pipeline system and managing crude oil production through artificial lift processes. The Company engineers, designs, operates, services and repairs its compression units, and maintains related support inventory and equipment. It provides compression services in mature conventional basins, including gas lift applications on crude oil wells focused by horizontal drilling techniques. The Company provides compression services in various shale plays throughout the United States, including the Utica, Marcellus, Permian Basin, Delaware Basin, Eagle Ford, Mississippi Lime, Granite Wash, Woodford, Barnett, Haynesville, Niobrara and Fayetteville shales.

Emerge Energy Services Company Profile

Emerge Energy Services LP owns, operates, acquires and develops a portfolio of energy service assets. The Company operates through Sand segment. The Company conducts its Sand operations through its subsidiary, Superior Silica Sands LLC (SSS). The Company’s Sand business mines, processes and distributes silica sand, an input for the hydraulic fracturing of oil and gas wells. As of December 31, 2016, its Wisconsin facilities consisted of three dry plants located in Arland, Barron and New Auburn, Wisconsin, with a total permitted capacity of 6.3 million finished tons per year, and five wet plants and mine complexes. As of December 31, 2016, its dry plant in Kosse, Texas, had a capacity of 600,000 tons per year that is supplied by a separate mine and wet plant that processes local Texas sand. As of December 31, 2016, the Company also had 14 transload facilities located throughout North America in the basins where it delivers its sand, as well as a fleet of 5,573 railcars.

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