ProFrac (NASDAQ:ACDC – Get Free Report) and TechnipFMC (NYSE:FTI – Get Free Report) are both energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.
Risk & Volatility
ProFrac has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500. Comparatively, TechnipFMC has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500.
Insider & Institutional Ownership
12.8% of ProFrac shares are held by institutional investors. Comparatively, 96.6% of TechnipFMC shares are held by institutional investors. 2.6% of ProFrac shares are held by company insiders. Comparatively, 1.4% of TechnipFMC shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ProFrac | $1.94 billion | 0.58 | -$369.00 million | ($2.20) | -2.82 |
| TechnipFMC | $9.93 billion | 2.94 | $963.90 million | $2.31 | 31.48 |
TechnipFMC has higher revenue and earnings than ProFrac. ProFrac is trading at a lower price-to-earnings ratio than TechnipFMC, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares ProFrac and TechnipFMC’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ProFrac | -18.97% | -33.18% | -11.22% |
| TechnipFMC | 9.70% | 31.14% | 10.16% |
Analyst Recommendations
This is a breakdown of current recommendations for ProFrac and TechnipFMC, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ProFrac | 3 | 2 | 1 | 0 | 1.67 |
| TechnipFMC | 0 | 4 | 13 | 1 | 2.83 |
ProFrac presently has a consensus price target of $5.83, suggesting a potential downside of 6.07%. TechnipFMC has a consensus price target of $61.73, suggesting a potential downside of 15.12%. Given ProFrac’s higher possible upside, analysts clearly believe ProFrac is more favorable than TechnipFMC.
Summary
TechnipFMC beats ProFrac on 12 of the 15 factors compared between the two stocks.
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.
About TechnipFMC
TechnipFMC plc engages in the energy projects, technologies, and systems and services businesses in Europe, Central Asia, North America, Latin America, the Asia Pacific, Africa, the Middle East, and internationally. It operates through two segments: Subsea and Surface Technologies. The Subsea segment engages in the design, engineering, procurement, manufacturing, fabrication, installation, and life of field services for subsea systems, subsea field infrastructure, and subsea pipe systems used in oil and gas production and transportation. It provides subsea production and processing system; flexible pipe; subsea umbilicals, risers, and flowlines; vessels; robotics; well and asset services; and Subsea Studio for optimizing the development, execution, and operation of current and future subsea fields. The Surface Technologies segment designs, manufactures, and services products and systems used in land and shallow water exploration and production of crude oil and natural gas. This segment offers drilling; surface wellheads and production trees systems; iComplete, a pressure control system; fracturing tree and manifold systems; flexible pipes; safety and integrity systems, multiphase meter modules, in-line separation and processing systems, and standard pumps; well control and integrity systems; separation and processing systems; skid systems; and flow measurement and automation solutions. It also offers planning, testing and installation, commissioning, operations, replacement and upgrade, maintenance, storage, preservation, intervention, integrity, decommissioning, and abandonment; and supplies flowline products and services. TechnipFMC plc was founded in 1884 and is headquartered in Houston, Texas.
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