RigNet (NASDAQ: RNET) and SEACOR Holdings (NYSE:CKH) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, institutional ownership, earnings, profitabiliy and risk.
Institutional and Insider Ownership
99.3% of RigNet shares are held by institutional investors. Comparatively, 94.0% of SEACOR Holdings shares are held by institutional investors. 1.2% of RigNet shares are held by insiders. Comparatively, 13.4% of SEACOR Holdings shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Volatility & Risk
RigNet has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, SEACOR Holdings has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.
Analyst Recommendations
This is a summary of recent recommendations and price targets for RigNet and SEACOR Holdings, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| RigNet | 0 | 2 | 1 | 0 | 2.33 |
| SEACOR Holdings | 0 | 0 | 1 | 0 | 3.00 |
RigNet presently has a consensus target price of $20.50, suggesting a potential upside of 11.11%. SEACOR Holdings has a consensus target price of $37.00, suggesting a potential upside of 4.82%. Given RigNet’s higher possible upside, equities analysts plainly believe RigNet is more favorable than SEACOR Holdings.
Profitability
This table compares RigNet and SEACOR Holdings’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| RigNet | -5.79% | -10.36% | -5.04% |
| SEACOR Holdings | -22.86% | -14.72% | -6.27% |
Earnings & Valuation
This table compares RigNet and SEACOR Holdings’ revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| RigNet | $206.35 million | 1.61 | $25.82 million | ($0.68) | -27.13 |
| SEACOR Holdings | $807.50 million | 0.77 | $74.80 million | ($10.89) | -3.24 |
SEACOR Holdings has higher revenue and earnings than RigNet. RigNet is trading at a lower price-to-earnings ratio than SEACOR Holdings, indicating that it is currently the more affordable of the two stocks.
Summary
RigNet beats SEACOR Holdings on 7 of the 12 factors compared between the two stocks.
About RigNet
RigNet, Inc. (RigNet) provides customized systems and solutions serving customers with data networking and operational requirements. The Company provides voice and data network, video conferencing and monitoring, crew welfare, asset and weather monitoring, and real-time data services. It operates through two segments: Managed Services, and Systems Integration and Automation (SI&A). The Managed Services segment provides remote communications services for offshore and onshore drilling rigs and production facilities, as well as, support vessels and other remote sites. The SI&A segment provides customized solutions for customer telecommunications systems. As of December 31, 2016, the Company provided remote communications and collaborative services to approximately 500 customers reaching approximately 900 remote sites located in approximately 50 countries on six continents. It provides managed remote communications, engineered telecommunications solutions and applications.
About SEACOR Holdings
SEACOR Holdings Inc., is engaged in the business of transportation and logistics, alcohol manufacturing, merchandising, and risk management consultancy. The Company’s segments include, Inland River Services, Shipping Services and Illinois Corn Processing. Inland River Services segment operates river transportation equipment used for moving agricultural and industrial commodities and petroleum and chemical products. Shipping Services segment operates a fleet of United States flag marine transportation related assets. Illinois Corn Processing segment produces alcohol used in the food, beverage, industrial and petrochemical end-markets. The Company also offers emergency and crisis services, lending and leasing activities, and noncontrolling investments in various other businesses.
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