Critical Contrast: Drilling Tools International (NASDAQ:DTI) and Coil Tubing Technology (OTCMKTS:CTBG)

Drilling Tools International (NASDAQ:DTI) and Coil Tubing Technology (OTCMKTS:CTBG) are both oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, earnings, profitability, analyst recommendations, risk, institutional ownership and valuation.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Drilling Tools International and Coil Tubing Technology, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Drilling Tools International	0	1	1	0	2.50
Coil Tubing Technology	0	0	0	0	N/A

Drilling Tools International currently has a consensus target price of $5.25, suggesting a potential upside of 58.61%. Given Drilling Tools International’s higher possible upside, analysts clearly believe Drilling Tools International is more favorable than Coil Tubing Technology.

Insider & Institutional Ownership

2.8% of Drilling Tools International shares are owned by institutional investors. 14.7% of Drilling Tools International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

Drilling Tools International has a beta of -0.99, meaning that its share price is 199% less volatile than the S&P 500. Comparatively, Coil Tubing Technology has a beta of 5.01, meaning that its share price is 401% more volatile than the S&P 500.

Profitability

This table compares Drilling Tools International and Coil Tubing Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Drilling Tools International	7.85%	16.64%	9.96%
Coil Tubing Technology	N/A	N/A	N/A

Earnings & Valuation

This table compares Drilling Tools International and Coil Tubing Technology”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Drilling Tools International	$152.03 million	0.76	$14.75 million	$0.39	8.49
Coil Tubing Technology	N/A	N/A	N/A	N/A	N/A

Drilling Tools International has higher revenue and earnings than Coil Tubing Technology.

Summary

Drilling Tools International beats Coil Tubing Technology on 8 of the 9 factors compared between the two stocks.

About Drilling Tools International

Drilling Tools International Corporation provides oilfield equipment and services to oil and natural gas sectors in North America, Europe, and the Middle East. It offers downhole tool rentals, machining, and inspection services to support the global drilling and wellbore construction industry. The company also provides products are bottom hole assembly components, such as stabilizers, subs, non-magnetic and steel drill collars, hole openers, and roller reamers, as well as drill pipe and drill pipe accessories; ancillary equipment and handling tools to support its rental platform, including float valves, ring gauges, tool baskets, lift bail, lift subs, mud magnets, elevators, bracket and bail assemblies, slips, tongs, stabbing guides and safety clamps; and blowout preventers, and pressure control accessory equipment. In addition, it offers tool rental services, which consists of rental, inspection, machining, and repair services; rents downhole drilling tools used in horizontal and directional drilling of oil and natural gas; rents kellys, pip joints, work strings; maintains a fleet of rental equipment consisting of drill collars, stabilizers, crossover subs, wellbore conditioning tools, drill pipe, hevi-wate drill pipe, and tubing; rents surface control equipment, such as blowout preventers and handling tools; and provides downhole products for producing wells. Drilling Tools International Corporation is headquartered in Houston, Texas.

About Coil Tubing Technology

Coil Tubing Technology, Inc., a coil tubing company, focuses on the development, marketing, and rental of advanced tools and related technical solutions for use with coil tubing and jointed pipe in the bottom hole assembly for the exploration and production of hydrocarbons worldwide. The company's products include jar accelerator, extended reach, bi-directional jar, jet hammer, jet motor, spinning wash, bumper sub, vibrational agitation, and indexing tools. Its products are used in thru-tubing fishing, thru-tubing workover and intervention, pipeline clean out, and coil tubing lateral drillout operations. The company was founded in 1999 and is headquartered in Houston, Texas.