Financial Contrast: Drilling Tools International (NASDAQ:DTI) and ProFrac (NASDAQ:ACDC)

Drilling Tools International (NASDAQ:DTI) and ProFrac (NASDAQ:ACDC) are both small-cap energy companies, but which is the better business? We will compare the two companies based on the strength of their dividends, valuation, earnings, analyst recommendations, profitability, institutional ownership and risk.

Volatility and Risk

Drilling Tools International has a beta of -0.37, suggesting that its share price is 137% less volatile than the S&P 500. Comparatively, ProFrac has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500.

Earnings and Valuation

This table compares Drilling Tools International and ProFrac”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Drilling Tools International	$154.45 million	0.49	$3.01 million	($0.13)	-16.38
ProFrac	$2.19 billion	0.31	-$215.10 million	($1.74)	-2.16

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Drilling Tools International and ProFrac, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Drilling Tools International	2	0	1	0	1.67
ProFrac	4	3	0	0	1.43

Drilling Tools International presently has a consensus price target of $5.50, suggesting a potential upside of 158.22%. ProFrac has a consensus price target of $6.10, suggesting a potential upside of 62.67%. Given Drilling Tools International’s stronger consensus rating and higher possible upside, analysts plainly believe Drilling Tools International is more favorable than ProFrac.

Profitability

This table compares Drilling Tools International and ProFrac’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Drilling Tools International	-2.81%	4.29%	2.32%
ProFrac	-12.89%	-22.78%	-8.09%

Institutional & Insider Ownership

2.8% of Drilling Tools International shares are owned by institutional investors. Comparatively, 12.8% of ProFrac shares are owned by institutional investors. 56.5% of Drilling Tools International shares are owned by insiders. Comparatively, 2.8% of ProFrac shares are owned by 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

Drilling Tools International beats ProFrac on 10 of the 14 factors compared between the two stocks.

About Drilling Tools International

Drilling Tools International Corporation provides oilfield equipment and services to oil and natural gas sectors in North America, Europe, and the Middle East. It offers downhole tool rentals, machining, and inspection services to support the global drilling and wellbore construction industry. The company also provides products are bottom hole assembly components, such as stabilizers, subs, non-magnetic and steel drill collars, hole openers, and roller reamers, as well as drill pipe and drill pipe accessories; ancillary equipment and handling tools to support its rental platform, including float valves, ring gauges, tool baskets, lift bail, lift subs, mud magnets, elevators, bracket and bail assemblies, slips, tongs, stabbing guides and safety clamps; and blowout preventers, and pressure control accessory equipment. In addition, it offers tool rental services, which consists of rental, inspection, machining, and repair services; rents downhole drilling tools used in horizontal and directional drilling of oil and natural gas; rents kellys, pip joints, work strings; maintains a fleet of rental equipment consisting of drill collars, stabilizers, crossover subs, wellbore conditioning tools, drill pipe, hevi-wate drill pipe, and tubing; rents surface control equipment, such as blowout preventers and handling tools; and provides downhole products for producing wells. Drilling Tools International Corporation is headquartered in Houston, Texas.

About ProFrac

ProFrac Holding Corp. operates as a technology-focused energy services holding company in the United States. It operates through three segments: Stimulation Services, Manufacturing, and Proppant Production. The company offers hydraulic fracturing, well stimulation, in-basin frac sand, and other completion services and complementary products and services to upstream oil and natural gas companies engaged in the exploration and production of unconventional oil and natural gas resources. It also manufactures and sells high horsepower pumps, valves, piping, swivels, large-bore manifold systems, and fluid ends. ProFrac Holding Corp. was founded in 2016 and is headquartered in Willow Park, Texas.