Head to Head Analysis: C&J Energy Services (CJ) & Tesco Corporation (TESO)

C&J Energy Services (NYSE: CJ) and Tesco Corporation (NASDAQ:TESO) are both small-cap oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, valuation, analyst recommendations, risk, institutional ownership and dividends.

Institutional and Insider Ownership

88.1% of Tesco Corporation shares are owned by institutional investors. 1.7% of Tesco Corporation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares C&J Energy Services and Tesco Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
C&J Energy Services N/A N/A N/A
Tesco Corporation -38.60% -16.27% -14.47%

Earnings and Valuation

This table compares C&J Energy Services and Tesco Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
C&J Energy Services N/A N/A N/A N/A N/A
Tesco Corporation $134.70 million 1.32 -$117.92 million ($1.26) -3.02

C&J Energy Services has higher revenue, but lower earnings than Tesco Corporation.

Analyst Ratings

This is a breakdown of recent ratings for C&J Energy Services and Tesco Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
C&J Energy Services 0 1 12 0 2.92
Tesco Corporation 1 2 2 0 2.20

C&J Energy Services currently has a consensus price target of $40.64, suggesting a potential upside of 37.15%. Tesco Corporation has a consensus price target of $6.00, suggesting a potential upside of 57.89%. Given Tesco Corporation’s higher possible upside, analysts plainly believe Tesco Corporation is more favorable than C&J Energy Services.

Summary

C&J Energy Services beats Tesco Corporation on 5 of the 9 factors compared between the two stocks.

About C&J Energy Services

C&J Energy Services, Inc. is a completion and production services company, which provides well construction, well completions and well services to the oil and gas industry. The Company operates through three segments: Completion Services, Well Support Services and Other Services. The Company also manufactures, repairs and refurbishes equipment used in the oilfield services industry. It operates in various North American onshore basins. Its Completion Services segment includes the hydraulic fracturing services, cased-hole wireline services, coiled tubing services and other well stimulation services. Its Well Support Services segment includes services, including rig services, fluid management services and other special well site services. Other services segment includes directional drilling services, equipment manufacturing and repair, specialty chemicals sales, research and technology, and the Middle East operations, as well as cementing services.

About Tesco Corporation

Tesco Corporation is a provider of technology-based solutions for drilling, servicing and completion of wells for the upstream energy industry. The Company’s operations consist of top drives and automated pipe handling equipment sales and rentals; aftermarket sales and services, and tubular services, including related products and accessories sales. Its segments include Products, Tubular Services, Research and Engineering, and Corporate and Other. The Products segment includes top drives and automated pipe handling equipment sales, rentals and aftermarket sales and services. The Tubular Services segment includes onshore and offshore tubular services and sales of related products and accessories. The Research and Engineering segment includes internal research, engineering, and development activities related to its products and tubular services. The Corporate and Other segment includes executive management and various global support and compliance functions.

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