Comparing Solaris Oilfield Infrastructure (SOI) and Fairmount Santrol Holdings (FMSA)

Solaris Oilfield Infrastructure (NYSE: SOI) and Fairmount Santrol Holdings (NYSE:FMSA) are both small-cap oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitabiliy, dividends, risk, analyst recommendations, earnings and institutional ownership.

Institutional & Insider Ownership

85.8% of Fairmount Santrol Holdings shares are owned by institutional investors. 16.2% of Fairmount Santrol Holdings shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Solaris Oilfield Infrastructure and Fairmount Santrol Holdings’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	EBITDA	Earnings Per Share	Price/Earnings Ratio
Solaris Oilfield Infrastructure	$25.34 million	5.40	$11.93 million	N/A	N/A
Fairmount Santrol Holdings	$562.14 million	1.06	$12.10 million	($0.79)	-3.35

Fairmount Santrol Holdings has higher revenue and earnings than Solaris Oilfield Infrastructure.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Solaris Oilfield Infrastructure and Fairmount Santrol Holdings, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solaris Oilfield Infrastructure	0	0	10	0	3.00
Fairmount Santrol Holdings	2	7	7	0	2.31

Solaris Oilfield Infrastructure currently has a consensus target price of $16.25, indicating a potential upside of 27.75%. Fairmount Santrol Holdings has a consensus target price of $8.04, indicating a potential upside of 203.50%. Given Fairmount Santrol Holdings’ higher probable upside, analysts plainly believe Fairmount Santrol Holdings is more favorable than Solaris Oilfield Infrastructure.

Profitability

This table compares Solaris Oilfield Infrastructure and Fairmount Santrol Holdings’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Solaris Oilfield Infrastructure	N/A	N/A	N/A
Fairmount Santrol Holdings	-24.91%	-91.27%	-6.13%

Summary

Solaris Oilfield Infrastructure beats Fairmount Santrol Holdings on 6 of the 11 factors compared between the two stocks.

Solaris Oilfield Infrastructure Company Profile

Solaris Oilfield Infrastructure, Inc. manufactures and provides its mobile proppant management systems that unload, store and deliver proppant at oil and natural gas well sites. The Company offers its services to oil and natural gas exploration and production (E&P) companies, as well as oilfield service companies. Its mobile proppant system is designed to address the challenges associated with transferring large quantities of proppant to the well site, including the cost and management of last mile logistics. Its systems provide 2.5 million pounds of proppant storage capacity. The Company manufactures its systems at its facility in Early, Texas, The Company’s system provides Streamlined last mile logistics and Improved execution to meet completion designs. Its systems provide triple the storage capacity, such as trailer-mounted, hydraulically powered storage bins. Its integrated PropView system delivers real-time proppant inventory and consumption levels.

Fairmount Santrol Holdings Company Profile

Fairmount Santrol Holdings Inc. is a provider of sand-based proppant solutions. The Company operates through two segments: Proppant Solutions, and Industrial & Recreational (I&R) Products. Its Proppant Solutions segment provides sand-based proppants for use in hydraulic fracturing operations throughout the United States and Canada, Argentina, Mexico, China, northern Europe and the United Arab Emirates. Its I&R segment provides raw, coated, and custom blended sands to the foundry, building products, glass, turf and landscape, and filtration industries in North America. Its asset base includes approximately 800 million tons of proven and probable mineral reserves. As of March 2017, the Company had 10 sand processing facilities with 16.8 million tons of annual sand processing capacity. Its coating facilities include operations in Mexico, Denmark and China, through which it serves international oil and gas markets.