Helix Energy Solutions Group (NYSE:HLX) & Western Energy Services (OTCMKTS:WEEEF) Financial Analysis

Helix Energy Solutions Group (NYSE:HLX) and Western Energy Services (OTCMKTS:WEEEF) are both small-cap energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability.

Analyst Recommendations

This is a breakdown of current ratings for Helix Energy Solutions Group and Western Energy Services, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Helix Energy Solutions Group	0	2	2	0	2.50
Western Energy Services	0	0	0	0	0.00

Helix Energy Solutions Group currently has a consensus target price of $10.50, suggesting a potential upside of 9.78%. Given Helix Energy Solutions Group’s stronger consensus rating and higher possible upside, research analysts plainly believe Helix Energy Solutions Group is more favorable than Western Energy Services.

Earnings and Valuation

This table compares Helix Energy Solutions Group and Western Energy Services”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Helix Energy Solutions Group	$1.29 billion	1.09	$30.83 million	$0.21	45.55
Western Energy Services	$155.66 million	0.50	-$18.61 million	($0.55)	-4.18

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

Insider and Institutional Ownership

91.3% of Helix Energy Solutions Group shares are owned by institutional investors. 6.8% of Helix Energy Solutions Group shares are owned by company insiders. Comparatively, 50.0% of Western Energy Services shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Helix Energy Solutions Group and Western Energy Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Helix Energy Solutions Group	2.39%	2.88%	1.71%
Western Energy Services	-11.90%	-0.22%	-0.16%

Volatility and Risk

Helix Energy Solutions Group has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500. Comparatively, Western Energy Services has a beta of 0.34, meaning that its share price is 66% less volatile than the S&P 500.

Summary

Helix Energy Solutions Group beats Western Energy Services on 13 of the 14 factors compared between the two stocks.

About Helix Energy Solutions Group

Helix Energy Solutions Group, Inc., together with its subsidiaries, an offshore energy services company, provides specialty services to the offshore energy industry in Brazil, the Gulf of Mexico, the East Coast of the United States, North Sea, the Asia Pacific, and West Africa regions. The company operates through four segments: Well Intervention, Robotics, Production Facilities, and Shallow Water Abandonment segments. It engages in the installation of flowlines, control umbilicals, and manifold assemblies and risers; trenching and burial of pipelines; installation and tie-in of riser and manifold assembly; commissioning, testing, and inspection activities; and provision of cable and umbilical lay, and connection services. The company also provides well intervention, intervention engineering, and production enhancement services; coiled tubing operations; inspection, repair, and maintenance of production structures, trees, jumpers, risers, pipelines, and subsea equipment; and related support services. In addition, it offers reclamation and remediation services; well plug and abandonment services; pipeline, cable and umbilical abandonment services; and site inspections. Additionally, the company offers oil and natural gas processing facilities and services; and fast response system, as well as site clearance and subsea support services. Further, it provides offshore oilfield decommissioning and reclamation, project management, engineered solutions, intervention, maintenance, repair, heavy lift, and commercial diving services. It serves independent oil and gas producers and suppliers, pipeline transmission companies, renewable energy companies, and offshore engineering and construction firms. The company was formerly known as Cal Dive International, Inc. and changed its name to Helix Energy Solutions Group, Inc. in March 2006. Helix Energy Solutions Group, Inc. was incorporated in 1979 and is headquartered in Houston, Texas.

About Western Energy Services

Western Energy Services Corp. operates as an oilfield service company in Canada and the United States. It operates through Contract Drilling and Production Services segments. The Contract Drilling segment provides contract drilling services using drilling rigs and auxiliary equipment. The Production Services segment offers well servicing rig and related equipment, as well as rental equipment services. Western Energy Services Corp. is headquartered in Calgary, Canada.