Analyzing ProPetro (NYSE:PUMP) and TechnipFMC (NYSE:FTI)

ProPetro (NYSE:PUMP) and TechnipFMC (NYSE:FTI) are both energy companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, dividends, analyst recommendations, valuation, profitability and earnings.

Earnings & Valuation

This table compares ProPetro and TechnipFMC”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ProPetro	$1.27 billion	1.43	$820,000.00	($0.11)	-134.32
TechnipFMC	$9.93 billion	2.68	$963.90 million	$2.62	25.48

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

Institutional and Insider Ownership

84.7% of ProPetro shares are owned by institutional investors. Comparatively, 96.6% of TechnipFMC shares are owned by institutional investors. 1.6% of ProPetro shares are owned by insiders. Comparatively, 1.4% of TechnipFMC shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for ProPetro and TechnipFMC, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ProPetro	1	2	8	0	2.64
TechnipFMC	0	4	12	1	2.82

ProPetro currently has a consensus price target of $16.63, indicating a potential upside of 12.52%. TechnipFMC has a consensus price target of $69.71, indicating a potential upside of 4.43%. Given ProPetro’s higher probable upside, analysts clearly believe ProPetro is more favorable than TechnipFMC.

Risk & Volatility

ProPetro has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500. Comparatively, TechnipFMC has a beta of 0.69, indicating that its share price is 31% less volatile than the S&P 500.

Profitability

This table compares ProPetro and TechnipFMC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ProPetro	-1.05%	-1.43%	-0.95%
TechnipFMC	10.62%	34.06%	11.30%

Summary

TechnipFMC beats ProPetro on 12 of the 15 factors compared between the two stocks.

About ProPetro

ProPetro Holding Corp. operates as an integrated oilfield services company. The company provides hydraulic fracturing, wireline, cementing, and other complementary oilfield completion services to upstream oil and gas companies in the Permian Basin. ProPetro Holding Corp. was founded in 2007 and is headquartered in Midland, Texas.

About TechnipFMC

TechnipFMC plc engages in the energy projects, technologies, and systems and services businesses in Europe, Central Asia, North America, Latin America, the Asia Pacific, Africa, the Middle East, and internationally. It operates through two segments: Subsea and Surface Technologies. The Subsea segment engages in the design, engineering, procurement, manufacturing, fabrication, installation, and life of field services for subsea systems, subsea field infrastructure, and subsea pipe systems used in oil and gas production and transportation. It provides subsea production and processing system; flexible pipe; subsea umbilicals, risers, and flowlines; vessels; robotics; well and asset services; and Subsea Studio for optimizing the development, execution, and operation of current and future subsea fields. The Surface Technologies segment designs, manufactures, and services products and systems used in land and shallow water exploration and production of crude oil and natural gas. This segment offers drilling; surface wellheads and production trees systems; iComplete, a pressure control system; fracturing tree and manifold systems; flexible pipes; safety and integrity systems, multiphase meter modules, in-line separation and processing systems, and standard pumps; well control and integrity systems; separation and processing systems; skid systems; and flow measurement and automation solutions. It also offers planning, testing and installation, commissioning, operations, replacement and upgrade, maintenance, storage, preservation, intervention, integrity, decommissioning, and abandonment; and supplies flowline products and services. TechnipFMC plc was founded in 1884 and is headquartered in Houston, Texas.