Financial Survey: OMS Energy Technologies (NASDAQ:OMSE) and Natural Gas Services Group (NYSE:NGS)

Natural Gas Services Group (NYSE:NGS) and OMS Energy Technologies (NASDAQ:OMSE) are both small-cap energy companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, profitability and risk.

Profitability

This table compares Natural Gas Services Group and OMS Energy Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Natural Gas Services Group	10.92%	7.21%	3.69%
OMS Energy Technologies	N/A	N/A	N/A

Earnings & Valuation

This table compares Natural Gas Services Group and OMS Energy Technologies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Natural Gas Services Group	$156.74 million	2.24	$17.23 million	$1.42	19.72
OMS Energy Technologies	$203.61 million	1.01	$44.82 million	N/A	N/A

OMS Energy Technologies has higher revenue and earnings than Natural Gas Services Group.

Analyst Recommendations

This is a breakdown of recent ratings for Natural Gas Services Group and OMS Energy Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Natural Gas Services Group	0	1	1	1	3.00
OMS Energy Technologies	1	0	1	0	2.00

Natural Gas Services Group presently has a consensus target price of $32.50, indicating a potential upside of 16.07%. OMS Energy Technologies has a consensus target price of $10.00, indicating a potential upside of 105.76%. Given OMS Energy Technologies’ higher possible upside, analysts plainly believe OMS Energy Technologies is more favorable than Natural Gas Services Group.

Insider & Institutional Ownership

65.6% of Natural Gas Services Group shares are held by institutional investors. 5.1% of Natural Gas Services Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Natural Gas Services Group beats OMS Energy Technologies on 8 of the 11 factors compared between the two stocks.

About Natural Gas Services Group

Natural Gas Services Group, Inc. provides natural gas compression equipment and services to the energy industry in the United States. It engineers and fabricates, operates, rents, and maintains natural gas compressors for oil and natural gas production and plant facilities. It also designs, fabricates, and assembles compressor units for rental or sale; and designs, manufactures, and sells a line of reciprocating natural gas compressor frames, cylinders, and parts. In addition, the company offers flare stacks and related ignition and control devices for the onshore and offshore incineration of gas compounds, such as hydrogen sulfide, carbon dioxide, natural gas, and liquefied petroleum gases. Further, it provides aftermarket services for its compressor and flare sales business; and exchange and rebuild program for small horsepower screw compressors. It markets its products to exploration and production companies that utilize compressor units for artificial lift applications; and oil and natural gas exploration and production companies. Natural Gas Services Group, Inc. was incorporated in 1998 and is headquartered in Midland, Texas.

About OMS Energy Technologies

We are a growth-oriented manufacturer of surface wellhead systems, or SWS, and oil country tubular goods, or OCTG products used in the oil and gas industry. These products are primarily used for both onshore and offshore oil exploration and production, or E&P activities in the Asia Pacific and the Middle Eastern and North Africa (MENA) Regions. Our customers often operate in geographic locations where the operating environment requires wellheads, casing and tubing materials capable of meeting exact standards for temperature, pressure, corrosion, torque resistance and abrasion. Our products have been designed, manufactured and certified with the American Petroleum Standards (API) and International Organization of Standardization (ISO). Through our comprehensive and technologically advanced portfolio of SWS and OCTG, we are able to serve as a single-source supplier for our customers and respond to their demand for products. Our operations benefit from our broad, strategically positioned geographic footprint, which supports our ability to supply our (i) Specialty Connectors and Pipes and (ii) Surface wellhead and Christmas tree allowing us to serve our customers operating in the Asia Pacific and MENA Regions. We have finishing facilities in close proximity to some of our top end-users’ E&P operations, for example, we have facilities in Saudi Arabia where our largest client, Saudi ARAMCO Oil is located, which allows us to provide our customers with customized technical solutions and to synchronize our production and logistics with evolving demands. — Our products are also exported to jurisdictions where we do not have a physical location, including countries in North and West Africa. Apart from the SWS and OCTG products, we also offer premium threading services in 5 of the 6 jurisdictions we operate in, which five jurisdictions are Indonesia, Malaysia, Thailand, Brunei and Singapore. For the six months ended September 30, 2024 (Successor), period from June 16, 2023 through March 31, 2024 (Successor), period from April 1 through June 15, 2023 (Predecessor) and financial year ended March 31, 2023 (Predecessor), these four categories constituted 93%, 93%, 87% and 88% of our revenue, respectively. — Our Company was incorporated on December 27, 2023 under the laws of the Cayman Islands. We primarily conduct our business through our subsidiaries (i) OMS (Singapore), (ii) OMS (Saudi Arabia), (iii) OMS (Indonesia), (iv) OMS (Thailand), (v) OMS (Malaysia Holding), (vi) OMS (Malaysia OpCo) and (vii) OMS (Brunei), operating in Singapore, Saudi Arabia, Indonesia, Thailand, Malaysia and Brunei, respectively. Furthermore, through our localization efforts in collaboration with the various governments, we operate manufacturing facilities and warehouses across these six jurisdictions that we operate in. Our company has established a comprehensive quality control and assurance system for our products. All of our sites hold qualifications for both the ISO 9001 and API Q1 quality management systems. These certifications serve as the foundation for obtaining various product quality qualifications under the API. Different Basis of Accounting — It is important to note that the periods presented were prepared under different bases of accounting. The Predecessor period from April 1, 2023 through June 15, 2023 were prepared under the previous reporting structure before the MBO, whereas the Successor periods from June 16, 2023 through September 30, 2023, for the six months ended September 30, 2024 and the period from June 16, 2023 through March 31, 2024 were prepared under our current reporting structure. As a result, direct comparisons between these Predecessor and Successor periods may not be indicative of our financial performance had both periods been presented under the same basis of accounting. Investors should consider this difference when evaluating the fluctuations in our revenue, gross margin, and net profit. Our principal executive office is in Singapore.