Head to Head Review: Enerflex (EFXT) vs. Its Peers

Enerflex (NYSE:EFXTGet Free Report) is one of 178 public companies in the “Energy Equipment & Services” industry, but how does it compare to its peers? We will compare Enerflex to similar companies based on the strength of its institutional ownership, risk, earnings, dividends, valuation, profitability and analyst recommendations.

Dividends

Enerflex pays an annual dividend of $0.12 per share and has a dividend yield of 0.6%. Enerflex pays out 27.9% of its earnings in the form of a dividend. As a group, “Energy Equipment & Services” companies pay a dividend yield of 2.6% and pay out 48.6% of their earnings in the form of a dividend. Enerflex has raised its dividend for 1 consecutive years.

Profitability

This table compares Enerflex and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Enerflex 2.06% 11.86% 4.87%
Enerflex Competitors -10.92% 13.37% 1.44%

Risk and Volatility

Enerflex has a beta of 1.86, meaning that its stock price is 86% more volatile than the S&P 500. Comparatively, Enerflex’s peers have a beta of 0.76, meaning that their average stock price is 24% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Enerflex and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enerflex 0 3 5 0 2.62
Enerflex Competitors 1677 7134 8725 469 2.44

Enerflex presently has a consensus target price of $36.00, indicating a potential upside of 80.04%. As a group, “Energy Equipment & Services” companies have a potential upside of 21.16%. Given Enerflex’s stronger consensus rating and higher possible upside, research analysts clearly believe Enerflex is more favorable than its peers.

Insider and Institutional Ownership

46.5% of Enerflex shares are owned by institutional investors. Comparatively, 49.0% of shares of all “Energy Equipment & Services” companies are owned by institutional investors. 12.3% of shares of all “Energy Equipment & Services” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Enerflex and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Enerflex $2.57 billion $64.00 million 46.50
Enerflex Competitors $3.16 billion $26.09 million 15.13

Enerflex’s peers have higher revenue, but lower earnings than Enerflex. Enerflex is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Enerflex beats its peers on 9 of the 15 factors compared.

About Enerflex

(Get Free Report)

Enerflex Ltd. offers energy infrastructure and energy transition solutions to natural gas markets in North America, Latin America, and the Eastern Hemisphere. The company provides natural gas compression infrastructure, processing, and treated water infrastructure under contract to oil and natural gas customers; power generation rental solutions; custom and standard compression packages for reciprocating and screw compressor applications; re-engineering, re-configuration, and re-packaging of compressors for various field applications; integrated turnkey power generation, gas compression, processing facilities, natural gas compression, processing, and electric power solutions; after-market mechanical services and parts distribution, as well as maintenance solutions to the oil and natural gas industry, operations, and overhaul services; and equipment supply, parts supply, and general asset management. It also designs, engineers, manufactures, constructs, and installs modular natural gas processing equipment, low-carbon solutions, cryogenic systems, electric power solutions, and treated water solutions; and engages in the engineering, design, procurement, project management, and construction services for compression, process, treated water, and power generation equipment, as well as after-market service, parts, and operations and maintenance services for gas compression, processing, and treated water facilities in the region. The company was formerly known as Enerflex Systems Income Fund and changed its name to Enerflex Ltd. in January 2010. Enerflex Ltd. was founded in 1980 and is headquartered in Calgary, Canada.

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