Critical Survey: SEACOR Holdings (CKH) and Cypress Energy Partners, L.P. (CELP)

SEACOR Holdings (NYSE: CKH) and Cypress Energy Partners, L.P. (NYSE:CELP) are both small-cap oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, profitabiliy, institutional ownership, earnings, risk, dividends and analyst recommendations.

Institutional and Insider Ownership

94.0% of SEACOR Holdings shares are held by institutional investors. Comparatively, 0.7% of Cypress Energy Partners, L.P. shares are held by institutional investors. 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 stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for SEACOR Holdings and Cypress Energy Partners, L.P., as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SEACOR Holdings	0	0	1	0	3.00
Cypress Energy Partners, L.P.	0	3	0	0	2.00

SEACOR Holdings presently has a consensus price target of $37.00, suggesting a potential upside of 6.60%. Cypress Energy Partners, L.P. has a consensus price target of $8.00, suggesting a potential upside of 9.59%. Given Cypress Energy Partners, L.P.’s higher probable upside, analysts plainly believe Cypress Energy Partners, L.P. is more favorable than SEACOR Holdings.

Profitability

This table compares SEACOR Holdings and Cypress Energy Partners, L.P.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SEACOR Holdings	-22.86%	-14.72%	-6.27%
Cypress Energy Partners, L.P.	-0.43%	5.84%	0.64%

Valuation and Earnings

This table compares SEACOR Holdings and Cypress Energy Partners, L.P.’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	EBITDA	Earnings Per Share	Price/Earnings Ratio
SEACOR Holdings	$807.50 million	0.75	$74.80 million	($10.89)	-3.19
Cypress Energy Partners, L.P.	$289.25 million	0.30	$14.26 million	($0.20)	-36.50

SEACOR Holdings has higher revenue and earnings than Cypress Energy Partners, L.P.. Cypress Energy Partners, L.P. is trading at a lower price-to-earnings ratio than SEACOR Holdings, indicating that it is currently the more affordable of the two stocks.

Dividends

Cypress Energy Partners, L.P. pays an annual dividend of $0.84 per share and has a dividend yield of 11.5%. SEACOR Holdings does not pay a dividend. Cypress Energy Partners, L.P. pays out -420.0% of its earnings in the form of a dividend.

Volatility & Risk

SEACOR Holdings has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, Cypress Energy Partners, L.P. has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500.

Summary

Cypress Energy Partners, L.P. beats SEACOR Holdings on 8 of the 15 factors compared between the two stocks.

SEACOR Holdings Company Profile

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.

Cypress Energy Partners, L.P. Company Profile

Cypress Energy Partners, L.P. is a limited partnership company, which serves energy companies throughout North America. The Company provides independent pipeline inspection and integrity services to producers and pipeline companies and water and environmental services with salt water disposal (SWD) facilities to the United States onshore oil and natural gas producers and trucking companies. It operates through three segments: Pipeline Inspection Services (PIS), which provides independent inspection services to various energy, public utility and pipeline companies in both the United States and Canada; Integrity Services (IS), which provides hydrostatic testing services to natural gas and petroleum companies and pipeline construction companies of newly constructed and existing natural gas and petroleum pipelines, and Water and Environmental Services (W&ES), which provides SWD services to oil and natural gas producers and trucking companies.