Reviewing Select Water Solutions (NYSE:WTTR) and ProFrac (NASDAQ:ACDC)

ProFrac (NASDAQ:ACDC) and Select Water Solutions (NYSE:WTTR) are both energy companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.

Risk & Volatility

ProFrac has a beta of 1.48, suggesting that its stock price is 48% more volatile than the S&P 500. Comparatively, Select Water Solutions has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500.

Valuation and Earnings

This table compares ProFrac and Select Water Solutions”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ProFrac	$1.94 billion	0.33	-$369.00 million	($2.18)	-1.63
Select Water Solutions	$1.52 billion	1.47	$21.22 million	$0.41	39.36

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for ProFrac and Select Water Solutions, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ProFrac	2	2	1	0	1.80
Select Water Solutions	0	3	7	0	2.70

ProFrac currently has a consensus price target of $4.50, suggesting a potential upside of 26.58%. Select Water Solutions has a consensus price target of $24.43, suggesting a potential upside of 51.36%. Given Select Water Solutions’ stronger consensus rating and higher probable upside, analysts clearly believe Select Water Solutions is more favorable than ProFrac.

Profitability

This table compares ProFrac and Select Water Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ProFrac	-20.47%	-47.13%	-13.05%
Select Water Solutions	3.28%	4.70%	2.94%

Insider and Institutional Ownership

12.8% of ProFrac shares are owned by institutional investors. Comparatively, 81.7% of Select Water Solutions shares are owned by institutional investors. 2.2% of ProFrac shares are owned by insiders. Comparatively, 6.2% of Select Water Solutions shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Select Water Solutions beats ProFrac on 12 of the 14 factors compared between the two stocks.

About ProFrac

ProFrac Holding Corp. is an oilfield services company that supports onshore oil and natural gas producers, primarily in the United States. Its services focus on well completion, including hydraulic fracturing, which uses high-pressure fluid to help release hydrocarbons from underground formations. The company also provides wireline services used to prepare and monitor wells, and produces proppant and other materials used in completion operations. ProFrac’s business includes equipment and manufacturing capabilities that support its oilfield services operations.

About Select Water Solutions

Select Water Solutions, Inc. provides water-management and chemical services to oil and natural gas exploration and production companies. Its services support drilling, completions and ongoing production, with a focus on managing water used in and generated by energy operations. The company’s offerings include water sourcing, transfer, treatment, recycling and disposal, as well as water infrastructure such as pipelines and related facilities. It also supplies specialty chemicals and technical services designed for oilfield operations.