Contrasting Oceaneering International (NYSE:OII) and Oil States International (NYSE:OIS)

Oil States International (NYSE:OIS – Get Free Report) and Oceaneering International (NYSE:OII – Get Free Report) are both energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, profitability, risk, dividends, earnings and analyst recommendations.

Institutional & Insider Ownership

97.4% of Oil States International shares are held by institutional investors. Comparatively, 93.9% of Oceaneering International shares are held by institutional investors. 7.6% of Oil States International shares are held by company insiders. Comparatively, 1.3% of Oceaneering International shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Oil States International and Oceaneering International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Oil States International -16.78% 4.28% 2.87%
Oceaneering International 12.19% 18.40% 7.46%

Volatility and Risk

Oil States International has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500. Comparatively, Oceaneering International has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Oil States International and Oceaneering International, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oil States International 1 1 2 0 2.25
Oceaneering International 0 4 1 0 2.20

Oil States International presently has a consensus target price of $11.67, suggesting a potential upside of 40.82%. Oceaneering International has a consensus target price of $45.00, suggesting a potential downside of 0.04%. Given Oil States International’s stronger consensus rating and higher possible upside, equities analysts plainly believe Oil States International is more favorable than Oceaneering International.

Valuation & Earnings

This table compares Oil States International and Oceaneering International”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Oil States International $668.99 million 0.75 -$109.38 million ($1.89) -4.38
Oceaneering International $2.78 billion 1.61 $353.76 million $3.48 12.94

Oceaneering International has higher revenue and earnings than Oil States International. Oil States International is trading at a lower price-to-earnings ratio than Oceaneering International, indicating that it is currently the more affordable of the two stocks.

Summary

Oceaneering International beats Oil States International on 9 of the 14 factors compared between the two stocks.

About Oil States International

(Get Free Report)

Oil States International, Inc., through its subsidiaries, provides engineered capital equipment and products for the energy, industrial, and military sectors worldwide. The company operates through three segments: Well Site Services, Downhole Technologies, and Offshore/Manufactured Products. The Well Site Services segment offers a range of equipment and services that are used to drill for, establish, and maintain the flow of oil and natural gas from a well throughout its lifecycle. It also provides wireline support, frac stacks, isolation tools, downhole and extended reach activity, well testing and flowback operations, sand control, and land drilling services. The Downhole Technologies segment provides oil and gas perforation systems, and downhole tools in support of completion, intervention, wireline, and well abandonment operations. This segment also designs, manufactures, and markets its consumable engineered products to oilfield service, and exploration and production companies. The Offshore/Manufactured Products segment designs, manufactures, and markets capital equipment utilized on floating production systems, subsea pipeline infrastructure, and offshore drilling rigs and vessels. Its products include flexible bearings, advanced connector systems, high-pressure riser systems, managed pressure drilling systems, deepwater mooring systems, cranes, subsea pipeline products, and blow-out preventer stack integration products. This segment also provides short-cycle products, such as valves, elastomers, and other specialty products that are used in the land-based drilling and completion markets; and other products for use in industrial, military, alternative energy, and other applications. In addition, it offers specialty welding, fabrication, cladding and machining, offshore installation, and inspection and repair services. The company was incorporated in 1995 and is headquartered in Houston, Texas.

About Oceaneering International

(Get Free Report)

Oceaneering International, Inc. provides engineered services and products, and robotic solutions to the offshore energy, defense, aerospace, manufacturing, and entertainment industries worldwide. It operates through Subsea Robotics, Manufactured Products, Offshore Projects Group, Integrity Management & Digital Solutions, and Aerospace and Defense Technologies segments. The company offers remotely operated vehicles (ROVs) for drill support and vessel-based services, including subsea hardware installation, construction, pipeline inspection, survey and facilities inspection, maintenance, and repair; ROV tooling; and survey services, such as hydrographic survey, positioning services, and autonomous underwater vehicles for geoscience. It also provides distribution and connection systems, including production control umbilicals and field development hardware, pipeline connection, and repair systems to the energy industry; and autonomous mobile robotic technology and entertainment systems to various industries. In addition, the company offers subsea installation and intervention, including riserless light well intervention inspection, maintenance, and repair services; installation and workover control systems, and ROV workover control systems; diving services; project management and engineering; and drill pipe riser services and systems, and wellhead load relief solutions. Further, it provides asset integrity management, software and analytical solutions for the bulk cargo maritime industry, and software, digital, and connectivity solutions for the energy industry, as well as government services and products, including engineering and related manufacturing in defense and space exploration activities to the United States' government agencies and their prime contractors. Oceaneering International, Inc. was founded in 1964 and is headquartered in Houston, Texas.

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