Reviewing Helix Energy Solutions Group (HLX) and SemGroup (SEMG)

Helix Energy Solutions Group (NYSE: HLX) and SemGroup (NYSE:SEMG) are both small-cap oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Analyst Recommendations

This is a breakdown of recent recommendations for Helix Energy Solutions Group and SemGroup, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Helix Energy Solutions Group 1 0 6 0 2.71
SemGroup 0 7 3 0 2.30



Helix Energy Solutions Group presently has a consensus target price of $8.80, indicating a potential upside of 20.55%. SemGroup has a consensus target price of $26.58, indicating a potential upside of 6.10%. Given Helix Energy Solutions Group’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Helix Energy Solutions Group is more favorable than SemGroup.

Earnings and Valuation

This table compares Helix Energy Solutions Group and SemGroup’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Helix Energy Solutions Group $581.38 million 1.86 $30.05 million ($0.15) -48.67
SemGroup $2.08 billion 0.95 -$17.15 million ($0.24) -104.38

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

Profitability

This table compares Helix Energy Solutions Group and SemGroup’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Helix Energy Solutions Group 6.85% -0.50% -0.33%
SemGroup -1.74% 2.17% 0.72%

Institutional & Insider Ownership

88.1% of Helix Energy Solutions Group shares are held by institutional investors. 5.9% of Helix Energy Solutions Group shares are held by insiders. Comparatively, 0.8% of SemGroup shares are held by 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.

Dividends

SemGroup pays an annual dividend of $1.89 per share and has a dividend yield of 7.5%. Helix Energy Solutions Group does not pay a dividend. SemGroup pays out -787.5% of its earnings in the form of a dividend.

Risk & Volatility

Helix Energy Solutions Group has a beta of 2.46, meaning that its share price is 146% more volatile than the S&P 500. Comparatively, SemGroup has a beta of 1.87, meaning that its share price is 87% more volatile than the S&P 500.

Summary

Helix Energy Solutions Group beats SemGroup on 11 of the 16 factors compared between the two stocks.

About Helix Energy Solutions Group

Helix Energy Solutions Group, Inc., an offshore energy services company, provides specialty services to the offshore energy industry primarily in Brazil, the Gulf of Mexico, North Sea, the Asia Pacific, and West Africa regions. The company operates through three segments: Well Intervention, Robotics, and Production Facilities. The company engineers, manages, and conducts well construction, intervention, and abandonment operations in water depths ranging from 200 to 10,000 feet; and operates remotely operated vehicles (ROVs), trenchers, and ROVDrills for offshore construction and well intervention services. It also offers well intervention; intervention engineering; production enhancement; inspection, repair, and maintenance of production structures, trees, jumpers, risers, pipelines, and subsea equipment; and life of field support services. In addition, the company provides reclamation and remediation services; well plugging and abandonment services; pipeline abandonment services; and site inspections. Further, it engages in the installation of flowlines, control umbilicals, and manifold assemblies and risers; trenching and burial of pipelines; installation and tie-in of riser and manifold assembly; commissioning, testing, and inspection activities; and provision of cable and umbilical lay, and connection services. Additionally, the company offers oil and natural gas processing facilities and services to oil and gas companies; and fast response system services. It serves independent oil and gas producers and suppliers, pipeline transmission companies, alternative energy companies, and offshore engineering and construction firms. The company was formerly known as Cal Dive International, Inc. and changed its name to Helix Energy Solutions Group, Inc. in March 2006. Helix Energy Solutions Group, Inc. was incorporated in 1979 and is headquartered in Houston, Texas.

About SemGroup

SemGroup Corporation provides gathering, transportation, storage, distribution, marketing, and other midstream services for producers, refiners of petroleum products, and other market participants. Its Crude Transportation segment operates crude oil pipelines and truck transportation businesses. It operates a 455-mile crude oil gathering and transportation pipeline system in Kansas and northern Oklahoma; a 75-mile crude oil gathering pipeline system that transports crude oil from production facilities in the DJ Basin to the pipeline owned by White Cliffs Pipeline, L.L.C.; a 527-mile pipeline that transports crude oil from Platteville, Colorado to Cushing, Oklahoma; and 3 pipelines with an aggregate of 106 miles of pipe, as well as crude oil trucking fleet of 215 transport trucks and 210 trailers. The company's Crude Facilities segment operates crude oil storage and terminal businesses. It has 7.6 million barrels of crude oil storage capacity in Cushing, Oklahoma; and a 30-lane crude oil truck unloading facility with 350,000 barrels of storage capacity in Platteville, Colorado. Its Crude Supply and Logistics segment operates a crude oil marketing business. It has approximately 61,800 barrels of crude oil storage capacity in Trenton and Stanley. The company's HFOTCO segment stores, blends, and transports refinery products and refinery feedstocks through pipeline, barge, rail, truck, and ship. It operates a residual fuel oil storage terminal in Gulf Coast of the United States. Its SemGas segment provides natural gas gathering, processing, and marketing services. It operates 660 miles of low pressure and 140 miles of high pressure gathering lines in Oklahoma; and a 53-mile high pressure gathering pipeline located in the STACK play. Its SemCAMS segment owns and operates natural gas processing and gathering facilities with 600 miles of natural gas gathering and transportation pipelines in Alberta. The company was founded in 2000 and is headquartered in Tulsa, Oklahoma.

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