Dawson Geophysical (NASDAQ:DWSN – Get Free Report) and DMC Global (NASDAQ:BOOM – Get Free Report) are both small-cap energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, profitability and risk.
Valuation and Earnings
This table compares Dawson Geophysical and DMC Global”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Dawson Geophysical | $75.62 million | 0.92 | -$1.94 million | $0.12 | 18.58 |
| DMC Global | $609.84 million | 0.18 | -$13.45 million | ($0.93) | -5.73 |
Dawson Geophysical has higher earnings, but lower revenue than DMC Global. DMC Global is trading at a lower price-to-earnings ratio than Dawson Geophysical, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Dawson Geophysical has a beta of 0.01, meaning that its share price is 99% less volatile than the S&P 500. Comparatively, DMC Global has a beta of 1.8, meaning that its share price is 80% more volatile than the S&P 500.
Profitability
This table compares Dawson Geophysical and DMC Global’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Dawson Geophysical | 3.49% | 19.56% | 6.73% |
| DMC Global | -3.37% | -6.84% | -2.57% |
Institutional & Insider Ownership
7.9% of Dawson Geophysical shares are held by institutional investors. Comparatively, 77.6% of DMC Global shares are held by institutional investors. 0.3% of Dawson Geophysical shares are held by company insiders. Comparatively, 7.1% of DMC Global shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent ratings for Dawson Geophysical and DMC Global, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Dawson Geophysical | 0 | 1 | 0 | 0 | 2.00 |
| DMC Global | 1 | 2 | 1 | 0 | 2.00 |
DMC Global has a consensus target price of $9.00, indicating a potential upside of 68.86%. Given DMC Global’s higher possible upside, analysts clearly believe DMC Global is more favorable than Dawson Geophysical.
Summary
Dawson Geophysical beats DMC Global on 7 of the 13 factors compared between the two stocks.
About Dawson Geophysical
Dawson Geophysical Company provides onshore seismic data acquisition and processing services in the United States and Canada. The company acquires and processes 2-D, 3-D, and multi-component seismic data for its clients, including oil and gas companies, and independent oil and gas operators, as well as providers of multi-client data libraries and carbon capture sequestration projects. Its seismic crews supply seismic data primarily to companies engaged in the exploration and development of oil and natural gas on land and in land-to-water transition areas, as well as potash mining industry. The company was founded in 1952 and is headquartered in Midland, Texas. Dawson Geophysical Company is a subsidiary of Wilks Brothers, LLC.
About DMC Global
DMC Global Inc. provides a suite of engineered products and various solutions for the construction, energy, industrial processing, and transportation markets worldwide. The company operates through three segments: Arcadia, DynaEnergetics, and NobelClad. The Arcadia segment manufactures, assembles, and sells architectural building products, including exterior and interior framing systems, curtain walls, windows, doors, and interior partitions; architectural components, architectural framing systems, entrance systems, and sun control products; sliding and glazing systems; and thermally broken steel, aluminum windows and doors, and wood doors and windows. It sells its products through a national in-house sales force for buildings, such as office towers, airports, hotels, education and athletic facilities, health care locations, government buildings, retail centers, mixed use, and multi-family residential buildings. The DynaEnergetics segment designs, manufactures, markets, and sells perforating systems, including initiation systems, shaped charges, detonating cords, gun hardware, and control panels; and perforating systems and associated hardware for the oil and gas industry. It sells its products through direct selling, distributors, and independent sales representatives. The NobelClad segment produces and sells explosion-welded clad metal plates for use in the construction of heavy, corrosion resistant pressure vessels, and heat exchangers for oil and gas, chemical and petrochemical, alternative energy, hydrometallurgy, aluminum production, shipbuilding, rail car manufacturing, power generation, and industrial refrigeration industries. It sells its products through direct sales personnel, program managers, and independent sales representatives. The company was formerly known as Dynamic Materials Corporation and changed its name to DMC Global Inc. in November 2016. DMC Global Inc. was founded in 1965 and is headquartered in Broomfield, Colorado.
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