Drilling Tools International (NASDAQ:DTI – Get Free Report) and Oceaneering International (NYSE:OII – Get Free Report) are both energy companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.
Valuation and Earnings
This table compares Drilling Tools International and Oceaneering International”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Drilling Tools International | $159.63 million | 0.41 | -$3.76 million | ($0.09) | -20.67 |
| Oceaneering International | $2.78 billion | 1.57 | $353.76 million | $3.48 | 12.58 |
Oceaneering International has higher revenue and earnings than Drilling Tools International. Drilling Tools 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.
Volatility and Risk
Drilling Tools International has a beta of -0.61, suggesting that its share price is 161% less 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.
Institutional and Insider Ownership
2.8% of Drilling Tools International shares are owned by institutional investors. Comparatively, 93.9% of Oceaneering International shares are owned by institutional investors. 17.1% of Drilling Tools International shares are owned by insiders. Comparatively, 1.3% of Oceaneering International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of current ratings and target prices for Drilling Tools International and Oceaneering International, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Drilling Tools International | 1 | 2 | 0 | 0 | 1.67 |
| Oceaneering International | 0 | 3 | 1 | 1 | 2.60 |
Drilling Tools International presently has a consensus target price of $2.80, suggesting a potential upside of 50.54%. Oceaneering International has a consensus target price of $45.00, suggesting a potential upside of 2.79%. Given Drilling Tools International’s higher probable upside, analysts clearly believe Drilling Tools International is more favorable than Oceaneering International.
Profitability
This table compares Drilling Tools International and Oceaneering International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Drilling Tools International | -1.97% | 0.58% | 0.31% |
| Oceaneering International | 12.19% | 18.40% | 7.46% |
Summary
Oceaneering International beats Drilling Tools International on 13 of the 15 factors compared between the two stocks.
About Drilling Tools International
Drilling Tools International Corporation provides oilfield equipment and services to oil and natural gas sectors in North America, Europe, and the Middle East. It offers downhole tool rentals, machining, and inspection services to support the global drilling and wellbore construction industry. The company also provides products are bottom hole assembly components, such as stabilizers, subs, non-magnetic and steel drill collars, hole openers, and roller reamers, as well as drill pipe and drill pipe accessories; ancillary equipment and handling tools to support its rental platform, including float valves, ring gauges, tool baskets, lift bail, lift subs, mud magnets, elevators, bracket and bail assemblies, slips, tongs, stabbing guides and safety clamps; and blowout preventers, and pressure control accessory equipment. In addition, it offers tool rental services, which consists of rental, inspection, machining, and repair services; rents downhole drilling tools used in horizontal and directional drilling of oil and natural gas; rents kellys, pip joints, work strings; maintains a fleet of rental equipment consisting of drill collars, stabilizers, crossover subs, wellbore conditioning tools, drill pipe, hevi-wate drill pipe, and tubing; rents surface control equipment, such as blowout preventers and handling tools; and provides downhole products for producing wells. Drilling Tools International Corporation is headquartered in Houston, Texas.
About Oceaneering International
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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