Financial Contrast: Natural Gas Services Group (NGS) and Quintana Energy Services (QES)

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Natural Gas Services Group (NYSE:NGS) and Quintana Energy Services (NYSE:QES) are both small-cap oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.

Analyst Ratings

This is a summary of current recommendations and price targets for Natural Gas Services Group and Quintana Energy Services, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Natural Gas Services Group 0 0 3 0 3.00
Quintana Energy Services 0 1 6 0 2.86

Natural Gas Services Group currently has a consensus target price of $69.50, suggesting a potential upside of 256.96%. Quintana Energy Services has a consensus target price of $11.98, suggesting a potential upside of 64.38%. Given Natural Gas Services Group’s stronger consensus rating and higher possible upside, equities analysts clearly believe Natural Gas Services Group is more favorable than Quintana Energy Services.

Valuation and Earnings

This table compares Natural Gas Services Group and Quintana Energy Services’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Natural Gas Services Group $67.69 million 3.77 $19.85 million $0.11 177.00
Quintana Energy Services $438.03 million 0.55 -$21.15 million ($0.05) -145.80

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

Profitability

This table compares Natural Gas Services Group and Quintana Energy Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Natural Gas Services Group 30.05% 0.53% 0.45%
Quintana Energy Services N/A N/A N/A

Institutional and Insider Ownership

90.9% of Natural Gas Services Group shares are held by institutional investors. Comparatively, 17.0% of Quintana Energy Services shares are held by institutional investors. 6.6% of Natural Gas Services Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Natural Gas Services Group beats Quintana Energy Services on 11 of the 13 factors compared between the two stocks.

Natural Gas Services Group Company Profile

Natural Gas Services Group, Inc. provides gas compression equipment and services to the natural gas and oil industry in the United States. The company engages in the rental of small to medium horsepower compression equipment to non-conventional natural gas and oil production businesses. As of December 31, 2017, it had 2,546 natural gas compressors in its rental fleet totaling 369,961 horsepower. The company also assembles compressor components into compressor units for rent or sale; engineers and fabricates natural gas compressors; and designs and manufactures a line of reciprocating compressor frames, cylinders, and parts. In addition, it is involved in the design, fabrication, sale, installation, and service of flare stacks and related ignition and control devices for the onshore and offshore incineration of gas compounds, such as hydrogen sulfide, carbon dioxide, natural gas, and liquefied petroleum gases. Further, the company offers customer support services for its compressor and flare sales business; exchanges and rebuilds program for screw compressors; and maintains an inventory of new and used compressors. Natural Gas Services Group, Inc. was founded in 1998 and is headquartered in Midland, Texas.

Quintana Energy Services Company Profile

Quintana Energy Services Inc. provides oilfield services to onshore oil and natural gas exploration and production companies operating in conventional and unconventional plays in the United States. It operates through four segments: Directional Drilling Services, Pressure Pumping Services, Pressure Control Services, and Wireline Services. The Directional Drilling Services segment provides directional, horizontal, underbalanced, and measurement-while-drilling, as well as rental tool and pipe inspection services. The Pressure Pumping Services segment provides hydraulic fracturing stimulation services; cementing services, such as surface- and intermediate-casing and long-string cementing services; and a range of acid stimulation services comprising CO2 foamed acid stimulation services. As of December 31, 2017, this segment had a pressure pumping fleet of 245,925 hydraulic horsepower. The Pressure Control Services segment offers coiled tubing, rig-assisted snubbing, nitrogen, fluid pumping, and well control services for drilling, completion, and workover activities. As of December 31, 2017, this segment had a fleet of 23 coiled tubing, 36 rig-assisted snubbing, and 24 nitrogen pumping units. The Wireline Services segment offers pump-down services for setting plugs between frac stages, as well as the deployment of perforation equipment in connection with plug-and-perf operations; and other pump-down and cased-hole wireline services, including electro-mechanical pipe-cutting and punching. This segment also provides cased-hole production logging, injection profiling, stimulation performance evaluation, and water break-through identification services; and industrial logging services for cavern, storage, and injection wells, as well as operates Archer's POINT proprietary detection system and SPACE imaging and measurement platform in the land market. As of December 31, 2017, it owned 49 wireline units. The company was founded in 2017 and is headquartered in Houston, Texas.

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