Contrasting NXT Energy Solutions (OTCMKTS:NSFDF) & RPC (NYSE:RES)

RPC (NYSE:RES) and NXT Energy Solutions (OTCMKTS:NSFDF) are both small-cap energy companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, earnings and profitability.

Insider & Institutional Ownership

41.1% of RPC shares are held by institutional investors. Comparatively, 26.2% of NXT Energy Solutions shares are held by institutional investors. 60.5% of RPC shares are held by insiders. Comparatively, 34.1% of NXT Energy Solutions shares are held 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.

Volatility & Risk

RPC has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500. Comparatively, NXT Energy Solutions has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500.

Valuation and Earnings

This table compares RPC and NXT Energy Solutions”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RPC	$1.54 billion	0.79	$91.44 million	$0.23	23.85
NXT Energy Solutions	$470,000.00	71.66	-$6.62 million	($0.04)	-7.71

RPC has higher revenue and earnings than NXT Energy Solutions. NXT Energy Solutions is trading at a lower price-to-earnings ratio than RPC, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares RPC and NXT Energy Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RPC	3.77%	5.65%	4.42%
NXT Energy Solutions	N/A	-65.19%	-22.05%

Analyst Recommendations

This is a summary of recent ratings and price targets for RPC and NXT Energy Solutions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RPC	2	3	0	0	1.60
NXT Energy Solutions	0	0	0	0	0.00

RPC presently has a consensus price target of $4.69, indicating a potential downside of 14.54%. Given RPC’s stronger consensus rating and higher probable upside, equities research analysts plainly believe RPC is more favorable than NXT Energy Solutions.

Summary

RPC beats NXT Energy Solutions on 11 of the 13 factors compared between the two stocks.

About RPC

RPC, Inc., through its subsidiaries, engages provision of a range of oilfield services and equipment for the oil and gas companies involved in the exploration, production, and development of oil and gas properties. The company operates through Technical Services and Support Services segments. The Technical Services segment offers pressure pumping, fracturing, acidizing, cementing, downhole tools, coiled tubing, snubbing, nitrogen, well control, wireline, pump down, and fishing services that are used in the completion, production, and maintenance of oil and gas wells. The Support Services segment provides a range of rental tools for onshore and offshore oil and gas well drilling, completion, and workover activities. This segment also offers oilfield pipe inspection, and pipe management and storage services, as well as well control training and consulting services. It operates in the United States, Africa, Canada, Argentina, China, Mexico, Latin America, the Middle East, and internationally. The company was incorporated in 1984 and is headquartered in Atlanta, Georgia.

About NXT Energy Solutions

NXT Energy Solutions Inc., a technology company, provides services to the oil and gas industry through its proprietary stress field detection (SFD) technology worldwide. Its SFD technology, a remote sensing airborne survey system utilizes quantum-scale sensors to detect gravity field perturbations in an airborne survey method which can be used onshore and offshore to remotely identify traps and reservoirs with hydrocarbon and geothermal exploration potential. The company was formerly known as Energy Exploration Technologies Inc. and changed its name to NXT Energy Solutions Inc. in September 2008. NXT Energy Solutions Inc. was incorporated in 1994 and is headquartered in Calgary, Canada.