Critical Survey: KLX Energy Services (KLXE) & Its Rivals

KLX Energy Services (NASDAQ:KLXE) is one of 177 publicly-traded companies in the “Energy Equipment & Services” industry, but how does it weigh in compared to its rivals? We will compare KLX Energy Services to related companies based on the strength of its profitability, dividends, risk, valuation, earnings, analyst recommendations and institutional ownership.

Earnings and Valuation

This table compares KLX Energy Services and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
KLX Energy Services	$636.60 million	-$77.10 million	-0.32
KLX Energy Services Competitors	$3.24 billion	$29.73 million	12.52

KLX Energy Services’ rivals have higher revenue and earnings than KLX Energy Services. KLX Energy Services is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Volatility & Risk

KLX Energy Services has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500. Comparatively, KLX Energy Services’ rivals have a beta of 0.82, meaning that their average share price is 18% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for KLX Energy Services and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KLX Energy Services	1	1	0	0	1.50
KLX Energy Services Competitors	1670	6829	8615	489	2.45

As a group, “Energy Equipment & Services” companies have a potential upside of 39.62%. Given KLX Energy Services’ rivals stronger consensus rating and higher possible upside, analysts plainly believe KLX Energy Services has less favorable growth aspects than its rivals.

Profitability

This table compares KLX Energy Services and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
KLX Energy Services	-9.71%	N/A	-18.46%
KLX Energy Services Competitors	-10.65%	7.48%	1.47%

Insider & Institutional Ownership

42.7% of KLX Energy Services shares are owned by institutional investors. Comparatively, 48.9% of shares of all “Energy Equipment & Services” companies are owned by institutional investors. 5.4% of KLX Energy Services shares are owned by insiders. Comparatively, 12.3% of shares of all “Energy Equipment & Services” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

KLX Energy Services rivals beat KLX Energy Services on 12 of the 13 factors compared.

About KLX Energy Services

KLX Energy Services Holdings, Inc. provides drilling, completions, production, and well intervention services and products to the onshore oil and gas producing regions of the United States. The company operates through three segments: Southwest, Rocky Mountains, and Northeast/Mid-Con. It provides directional drilling services; downhole navigational and rental tools businesses and support services, including well planning, site supervision, accommodation rentals, and other drilling rentals; and various technologies, including gamma ray, azimuthal gamma ray, real-time continuous inclination and azimuth, rotary steerable, pressure-while-drilling, mode shifting, stick-slip and destructive dynamics, dynamic sequencing and real-time shock, and vibration modules. The company also offers coiled tubing and nitrogen services; wireline services, including pump down perforating, logging, and pipe recover; pressure control products and services; wellhead and hydraulic fracturing rental products and services; flowback and testing services; thru-tubing technologies and services; rig assist snubbing services; cementing products and services; acidizing and pressure pumping services; and downhole completion tools, such as toe sleeves, wet shoe cementing bypass subs, composite plugs, dissolvable plugs, liner hangers, stage cementing tools, inflatables, float and casing equipment, and retrievable completion tools. In addition, it provides production services comprising maintenance-related intervention services; production blow out preventers; mechanical wireline services; slick line services; hydro-testing services; premium tubulars; and other specialized production tools. Further, the company provides intervention services consisting of technicians and equipment that are focused on providing customers engineered solutions to downhole complications. KLX Energy Services Holdings, Inc. was incorporated in 2018 and is headquartered in Houston, Texas.