Shawcor (OTCMKTS:SAWLF – Get Free Report) and Kodiak Gas Services (NYSE:KGS – Get Free Report) are both energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.
Insider & Institutional Ownership
61.8% of Shawcor shares are owned by institutional investors. Comparatively, 24.9% of Kodiak Gas Services shares are owned by institutional investors. 0.6% of Kodiak Gas Services shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Shawcor and Kodiak Gas Services”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Shawcor | N/A | N/A | N/A | $2.27 | 5.72 |
| Kodiak Gas Services | $1.31 billion | 4.74 | $80.52 million | $0.84 | 72.95 |
Kodiak Gas Services has higher revenue and earnings than Shawcor. Shawcor is trading at a lower price-to-earnings ratio than Kodiak Gas Services, indicating that it is currently the more affordable of the two stocks.
Dividends
Shawcor pays an annual dividend of $0.55 per share and has a dividend yield of 4.2%. Kodiak Gas Services pays an annual dividend of $1.96 per share and has a dividend yield of 3.2%. Shawcor pays out 24.2% of its earnings in the form of a dividend. Kodiak Gas Services pays out 233.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kodiak Gas Services has increased its dividend for 2 consecutive years. Shawcor is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Shawcor and Kodiak Gas Services, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Shawcor | 0 | 0 | 0 | 0 | 0.00 |
| Kodiak Gas Services | 0 | 2 | 10 | 0 | 2.83 |
Kodiak Gas Services has a consensus target price of $78.89, suggesting a potential upside of 28.74%. Given Kodiak Gas Services’ stronger consensus rating and higher possible upside, analysts plainly believe Kodiak Gas Services is more favorable than Shawcor.
Profitability
This table compares Shawcor and Kodiak Gas Services’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Shawcor | N/A | N/A | N/A |
| Kodiak Gas Services | 5.77% | 11.92% | 3.70% |
Summary
Kodiak Gas Services beats Shawcor on 10 of the 14 factors compared between the two stocks.
About Shawcor
Shawcor Ltd., doing business as Mattr Infratech, operates as a material sciences company that serves the infrastructure, energy, and transportation markets worldwide. It operates through three segments: Composite Technologies, Connection Technologies, and Pipeline and Pipe Services. The Composite Technologies segment manufactures flexible composite that are used for oil and gas gathering, and other applications; fiberglass reinforced plastic underground storage tanks for the retail fuel, water and wastewater, and oil and gas markets. The Connection Technologies segment manufactures heat-shrinkable products, including thin, medium, and heavy-walled tubing; sleeves and molded products, as well as heat-shrink accessories and equipment; and low-voltage wires and cables for control, instrumentation, thermocouple, power, and industrial applications. The Pipeline and Pipe Services segment offers ultrasonic and radiographic pipeline girth weld inspection services to pipeline operators and construction contractors. The company was formerly known as Shaw Industries Ltd. and changed its name to Shawcor Ltd. in 2001. Shawcor Ltd. was founded in 1930 and is headquartered in Toronto, Canada.
About Kodiak Gas Services
Kodiak Gas Services, Inc. operates contract compression infrastructure for customers in the oil and gas industry in the United States. It operates in two segments, Compression Operations and Other Services. The Compression Operations segment operates company-owned and customer-owned compression infrastructure to enable the production, gathering, and transportation of natural gas and oil. The Other Services segment provides a range of contract services, including station construction, maintenance and overhaul, and other ancillary time and material-based offerings. The company was formerly known as Frontier TopCo, Inc. Kodiak Gas Services, Inc. was founded in 2010 and is headquartered in The Woodlands, Texas.
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