Financial Comparison: NXT Energy Solutions (OTCMKTS:NSFDF) and NCS Multistage (NASDAQ:NCSM)

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

Insider and Institutional Ownership

26.2% of NXT Energy Solutions shares are held by institutional investors. Comparatively, 70.9% of NCS Multistage shares are held by institutional investors. 34.1% of NXT Energy Solutions shares are held by company insiders. Comparatively, 11.9% of NCS Multistage 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.

Analyst Ratings

This is a breakdown of recent recommendations for NXT Energy Solutions and NCS Multistage, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NXT Energy Solutions	0	0	0	0	0.00
NCS Multistage	0	0	1	2	3.67

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NXT Energy Solutions	-16.33%	-21.32%	-13.28%
NCS Multistage	12.93%	10.32%	8.09%

Earnings & Valuation

This table compares NXT Energy Solutions and NCS Multistage”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NXT Energy Solutions	$11.70 million	3.06	-$1.66 million	($0.02)	-15.00
NCS Multistage	$183.63 million	1.22	$23.75 million	$8.56	9.95

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

Risk & Volatility

NXT Energy Solutions has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500. Comparatively, NCS Multistage has a beta of 0.34, meaning that its stock price is 66% less volatile than the S&P 500.

Summary

NCS Multistage beats NXT Energy Solutions on 11 of the 14 factors compared between the two stocks.

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.

About NCS Multistage

NCS Multistage Holdings, Inc. provides engineered products and support services for oil and natural gas well completions and construction, and field development strategies in the United States, Canada, and internationally. It offers fracturing systems, which include casing-installed sliding sleeves, downhole frac isolation assemblies, and sand jet perforating products; enhanced recovery products, such as sliding sleeve, as well as Terrus system, an injection control device; repeat precision products comprising composite frac plugs and bridge plugs, single-use disposable setting tools, express systems, and related products; chemical and radioactive tracer diagnostics services; and well construction products, including AirLock casing buoyancy system, Vecturon and Vectraset liner hanger systems, and Toe initiation sleeves. It offers its products and services primarily to exploration and production companies for use in onshore wells through technically-trained sales force, and operating partners or sales representatives. The company was formerly known as Pioneer Super Holdings, Inc. and changed its name to NCS Multistage Holdings, Inc. in December 2016. NCS Multistage Holdings, Inc. was founded in 2006 and is headquartered in Houston, Texas.