RigNet (NASDAQ: RNET) and Willbros Group (NYSE:WG) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, earnings, analyst recommendations, risk, profitabiliy and valuation.
Profitability
This table compares RigNet and Willbros Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| RigNet | -5.79% | -10.36% | -5.04% |
| Willbros Group | -6.17% | -31.89% | -11.13% |
Risk & Volatility
RigNet has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500. Comparatively, Willbros Group has a beta of 3.22, indicating that its stock price is 222% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings and target prices for RigNet and Willbros Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| RigNet | 0 | 2 | 1 | 0 | 2.33 |
| Willbros Group | 0 | 0 | 0 | 0 | N/A |
RigNet presently has a consensus price target of $20.50, suggesting a potential upside of 6.22%. Given RigNet’s higher possible upside, equities research analysts clearly believe RigNet is more favorable than Willbros Group.
Institutional and Insider Ownership
99.5% of RigNet shares are owned by institutional investors. Comparatively, 57.2% of Willbros Group shares are owned by institutional investors. 1.2% of RigNet shares are owned by company insiders. Comparatively, 2.1% of Willbros Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings and Valuation
This table compares RigNet and Willbros Group’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| RigNet | $206.35 million | 1.69 | $25.82 million | ($0.68) | -28.38 |
| Willbros Group | $730.56 million | 0.19 | -$9.80 million | ($0.73) | -3.00 |
RigNet has higher revenue, but lower earnings than Willbros Group. RigNet is trading at a lower price-to-earnings ratio than Willbros Group, indicating that it is currently the more affordable of the two stocks.
Summary
RigNet beats Willbros Group on 9 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 Willbros Group
Willbros Group, Inc. is a specialty energy infrastructure contractor serving the oil and gas and power industries with offerings that primarily include construction, maintenance and facilities development services. The Company operates through three segments: Oil & Gas, Utility T&D and Canada. The Company provides services through operating subsidiaries. The Company’s segments operated primarily in the United States and Canada. The Company provides construction, maintenance and lifecycle extension services to the midstream markets. The Company provides a range of services in electric and natural gas transmission and distribution, including engineering, procurement, maintenance and construction, repair and restoration of utility infrastructure. It is engaged in construction, maintenance and fabrication, including integrity and supporting civil work, general mechanical and facility construction, application program interface (API) storage tanks, general and modular fabrication.
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