Critical Analysis: Basic Energy Services (NYSE:BAS) & Glori Energy (GLRI)

Basic Energy Services (NYSE: BAS) and Glori Energy (OTCMKTS:GLRI) are both small-cap oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, valuation, institutional ownership, analyst recommendations, earnings, risk and dividends.

Earnings & Valuation

This table compares Basic Energy Services and Glori Energy’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Basic Energy Services $547.50 million 1.04 -$123.37 million ($6.52) -3.36
Glori Energy $9.00 million 0.04 -$36.25 million ($1.14) -0.01

Glori Energy has lower revenue, but higher earnings than Basic Energy Services. Basic Energy Services is trading at a lower price-to-earnings ratio than Glori Energy, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Basic Energy Services and Glori Energy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Basic Energy Services 0 5 4 0 2.44
Glori Energy 0 0 0 0 N/A

Basic Energy Services currently has a consensus price target of $27.90, indicating a potential upside of 27.34%. Given Basic Energy Services’ higher probable upside, research analysts clearly believe Basic Energy Services is more favorable than Glori Energy.

Profitability

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

Net Margins Return on Equity Return on Assets
Basic Energy Services -29.23% -24.91% -11.82%
Glori Energy N/A N/A N/A

Risk & Volatility

Basic Energy Services has a beta of 2.98, suggesting that its share price is 198% more volatile than the S&P 500. Comparatively, Glori Energy has a beta of 4.54, suggesting that its share price is 354% more volatile than the S&P 500.

Summary

Glori Energy beats Basic Energy Services on 6 of the 10 factors compared between the two stocks.

About Basic Energy Services

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.

About Glori Energy

Glori Energy Inc., an energy technology and oil production company, provides services to third party exploration and production companies in North America and Brazil. It operates through Oil and Gas, and AERO Services segments. The Oil and Gas segment produces and develops oil and natural gas interests. The AERO Services segment offers biotechnology solutions of enhanced oil recovery through a two-step process, including analysis phase, reservoir screening process that obtains field samples and evaluates potential of AERO system; and field deployment phase that deploys skid mounted injection equipment. Glori Energy Inc. was founded in 2005 and is headquartered in Houston, Texas.

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