Head-To-Head Contrast: Solaris Energy Infrastructure (NASDAQ:SEI) & DNOW (NYSE:DNOW)

Solaris Energy Infrastructure (NASDAQ:SEI) and DNOW (NYSE:DNOW) are both small-cap oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, analyst recommendations, dividends and risk.

Earnings & Valuation

This table compares Solaris Energy Infrastructure and DNOW”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Solaris Energy Infrastructure	$292.95 million	6.22	$24.34 million	$0.44	61.74
DNOW	$2.32 billion	0.64	$247.00 million	$1.87	7.55

DNOW has higher revenue and earnings than Solaris Energy Infrastructure. DNOW is trading at a lower price-to-earnings ratio than Solaris Energy Infrastructure, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Solaris Energy Infrastructure and DNOW’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Solaris Energy Infrastructure	4.80%	6.66%	4.12%
DNOW	8.70%	8.90%	6.19%

Risk & Volatility

Solaris Energy Infrastructure has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500. Comparatively, DNOW has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500.

Institutional & Insider Ownership

67.4% of Solaris Energy Infrastructure shares are owned by institutional investors. Comparatively, 97.6% of DNOW shares are owned by institutional investors. 34.7% of Solaris Energy Infrastructure shares are owned by company insiders. Comparatively, 2.6% of DNOW shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings for Solaris Energy Infrastructure and DNOW, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solaris Energy Infrastructure	0	0	3	1	3.25
DNOW	0	1	1	0	2.50

Solaris Energy Infrastructure presently has a consensus price target of $41.50, suggesting a potential upside of 52.77%. DNOW has a consensus price target of $15.50, suggesting a potential upside of 9.85%. Given Solaris Energy Infrastructure’s stronger consensus rating and higher probable upside, equities analysts plainly believe Solaris Energy Infrastructure is more favorable than DNOW.

Summary

DNOW beats Solaris Energy Infrastructure on 8 of the 15 factors compared between the two stocks.

About Solaris Energy Infrastructure

Solaris Energy Infrastructure, Inc. is a holding company, which engages in the manufacture of patented mobile proppant management systems that unload, store, and deliver proppant to oil and natural gas well sites. Its products include Mobile Proppant and Mobile Chemical Management Systems, and Inventory Management Software. The firm’s services include field, last mile management, and transloading services. The company was founded by William A. Zartler in 2014 and is headquartered in Houston, TX.

About DNOW

DNOW Inc. distributes downstream energy and industrial products for petroleum refining, chemical processing, LNG terminals, power generation utilities, and customer on-site locations in the United States, Canada, and internationally. The company provides consumable maintenance, repair, and operating supplies; pipes, manual and automated valves, fittings, flanges, gaskets, fasteners, electrical instrumentations, artificial lift, pumping solutions, valve actuation and modular process, and measurement and control equipment; and mill supplies, tools, safety supplies, and personal protective equipment, as well as artificial lift systems, coatings, and miscellaneous expendable items. It also offers original equipment manufacturer equipment, including pumps, generator sets, air compressors, dryers, blowers, mixers, and valves; modular oil and gas tank battery solutions; and application systems, work processes, parts integration, optimization solutions, and after-sales support services. In addition, the company provides supply chain and materials management; inventory planning and management, procurement, and warehouse management, as well as solutions for logistics, point of issue technology, project management, business process, and performance metrics reporting services. It serves customers in the upstream, midstream, and downstream sectors of the energy industry, including drilling contractors, well-servicing companies, independent and national oil and gas companies, midstream operators, and refineries, as well as petrochemical, chemical, utilities, RNG facilities, and other downstream energy processors; and industrial and manufacturing companies. The company was formerly known as NOW Inc. and changed its name to DNOW Inc. in January 2024. DNOW Inc. was founded in 1862 and is headquartered in Houston, Texas.