Head to Head Analysis: FMC Technologies (NYSE:FTI) & Basic Energy Services (BAS)

FMC Technologies (NYSE: FTI) and Basic Energy Services (NYSE:BAS) are both oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, earnings, profitabiliy, risk and valuation.

Profitability

This table compares FMC Technologies and Basic Energy Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FMC Technologies N/A 5.85% 2.68%
Basic Energy Services -44.40% -71.68% -21.65%

Institutional and Insider Ownership

64.7% of FMC Technologies shares are held by institutional investors. Comparatively, 97.3% of Basic Energy Services shares are held by institutional investors. 0.9% of FMC Technologies shares are held by company insiders. Comparatively, 11.1% of Basic Energy Services shares are held by company 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.

Risk and Volatility

FMC Technologies has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500. Comparatively, Basic Energy Services has a beta of 2.74, meaning that its stock price is 174% more volatile than the S&P 500.

Valuation & Earnings

This table compares FMC Technologies and Basic Energy Services’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
FMC Technologies $11.94 billion 1.10 $1.41 billion N/A N/A
Basic Energy Services $692.45 million 0.81 -$22.37 million N/A N/A

FMC Technologies has higher revenue and earnings than Basic Energy Services.

Analyst Recommendations

This is a summary of recent ratings for FMC Technologies and Basic Energy Services, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FMC Technologies 1 7 10 0 2.50
Basic Energy Services 0 7 3 0 2.30

FMC Technologies currently has a consensus price target of $34.71, indicating a potential upside of 22.85%. Basic Energy Services has a consensus price target of $26.50, indicating a potential upside of 22.80%. Given FMC Technologies’ stronger consensus rating and higher probable upside, equities research analysts plainly believe FMC Technologies is more favorable than Basic Energy Services.

Summary

FMC Technologies beats Basic Energy Services on 9 of the 12 factors compared between the two stocks.

FMC Technologies Company Profile

FMC Technologies, Inc. is a global provider of technology solutions for the energy industry. The Company designs, manufactures and services a range of systems and products, including subsea production and processing systems, surface wellhead production systems, high pressure fluid control equipment, measurement solutions and marine loading systems. Its segments include Subsea Technologies, Surface Technologies and Energy Infrastructure. The Subsea Technologies segment designs and manufactures products and systems, and provides services used by oil and gas companies involved in deepwater exploration and production of crude oil and natural gas. The Surface Technologies segment designs and manufactures products and systems, and provides services used by oil and gas companies involved in land and offshore exploration, and production of crude oil and natural gas. The Energy Infrastructure segment’s products and services include Measurement Solutions, Loading Systems and Separation Systems.

Basic Energy Services Company Profile

Basic Energy Services, Inc. provides a range of well site services in the United States to oil and natural gas drilling and producing companies, including completion and remedial services, fluid services, well servicing and contract drilling. The Company operates through the segment, which include Completion and Remedial Services, Fluid Services, Well Servicing and Contract Drilling. The Company’s operations are managed regionally and are concentrated in the United States onshore oil and natural gas producing regions located in Texas, New Mexico, Oklahoma, Arkansas, Kansas, Louisiana, Wyoming, North Dakota, Colorado, Utah, Montana, West Virginia, California, Ohio and Pennsylvania. Its operations are focused on liquids-rich basins, as well as natural gas-focused shale plays characterized by prolific reserves. It has a presence in the Permian Basin and the Bakken, Eagle Ford, Haynesville and Marcellus shales.

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