Critical Review: Nabors Energy Transition Corp. II (NASDAQ:NETD) & FST (NASDAQ:KBSX)

Nabors Energy Transition Corp. II (NASDAQ:NETD) and FST (NASDAQ:KBSX) are both small-cap financial services companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Risk and Volatility

Nabors Energy Transition Corp. II has a beta of -0.02, suggesting that its share price is 102% less volatile than the S&P 500. Comparatively, FST has a beta of 0.42, suggesting that its share price is 58% less volatile than the S&P 500.

Earnings and Valuation

This table compares Nabors Energy Transition Corp. II and FST”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nabors Energy Transition Corp. II	N/A	N/A	$11.95 million	$0.19	59.68
FST	$36.50 million	1.62	-$3.23 million	($0.35)	-4.49

Nabors Energy Transition Corp. II has higher earnings, but lower revenue than FST. FST is trading at a lower price-to-earnings ratio than Nabors Energy Transition Corp. II, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Nabors Energy Transition Corp. II and FST, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nabors Energy Transition Corp. II	1	0	0	0	1.00
FST	1	0	0	0	1.00

Profitability

This table compares Nabors Energy Transition Corp. II and FST’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nabors Energy Transition Corp. II	N/A	-50.62%	2.33%
FST	N/A	N/A	N/A

Insider and Institutional Ownership

75.5% of Nabors Energy Transition Corp. II shares are held by institutional investors. Comparatively, 50.9% of FST shares are held by institutional investors. 20.0% of Nabors Energy Transition Corp. II shares are held by company insiders. Comparatively, 54.6% of FST shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Nabors Energy Transition Corp. II beats FST on 5 of the 9 factors compared between the two stocks.

About Nabors Energy Transition Corp. II

Nabors Energy Transition Corp. II focuses on effecting a merger, amalgamation, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses or entities. The company intends to identify solutions, opportunities, companies, or technologies that focus on advancing the energy transition that facilitate, improve, or complement the reduction of carbon or greenhouse gas emissions. Nabors Energy Transition Corp. II company was incorporated in 2023 and is based in Houston, Texas. The company is a subsidiary of Nabors Energy Transition Sponsor II LLC.

About FST

FST Corp. designs, manufactures, markets, and distributes steel golf shafts to golf club original equipment manufacturers and distributors worldwide. The company offers steel shafts under the KBS brand name. FST Corp.is based in Chiayi, Taiwan.