Financial Analysis: Glori Energy (OTCMKTS:GLRI) & RPC (NYSE:RES)

RPC (NYSE:RES) and Glori Energy (OTCMKTS:GLRI) are both energy companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Insider and Institutional Ownership

41.1% of RPC shares are held by institutional investors. 60.5% of RPC shares are held by insiders. Comparatively, 46.2% of Glori Energy shares are held 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.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for RPC and Glori Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RPC	1	4	0	0	1.80
Glori Energy	0	0	0	0	0.00

RPC presently has a consensus price target of $5.25, suggesting a potential downside of 19.54%. Given Glori Energy’s higher probable upside, analysts plainly believe Glori Energy is more favorable than RPC.

Earnings and Valuation

This table compares RPC and Glori Energy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RPC	$1.42 billion	1.02	$91.44 million	$0.23	28.37
Glori Energy	N/A	N/A	N/A	N/A	N/A

RPC has higher revenue and earnings than Glori Energy.

Profitability

This table compares RPC and Glori Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RPC	3.12%	5.58%	4.26%
Glori Energy	N/A	N/A	N/A

Summary

RPC beats Glori Energy on 7 of the 8 factors compared between the two stocks.

About RPC

RPC, Inc., through its subsidiaries, engages provision of a range of oilfield services and equipment for the oil and gas companies involved in the exploration, production, and development of oil and gas properties. The company operates through Technical Services and Support Services segments. The Technical Services segment offers pressure pumping, fracturing, acidizing, cementing, downhole tools, coiled tubing, snubbing, nitrogen, well control, wireline, pump down, and fishing services that are used in the completion, production, and maintenance of oil and gas wells. The Support Services segment provides a range of rental tools for onshore and offshore oil and gas well drilling, completion, and workover activities. This segment also offers oilfield pipe inspection, and pipe management and storage services, as well as well control training and consulting services. It operates in the United States, Africa, Canada, Argentina, China, Mexico, Latin America, the Middle East, and internationally. The company was incorporated in 1984 and is headquartered in Atlanta, Georgia.

About Glori Energy

Glori Energy Inc., an energy technology and oil production company, provides services to third party exploration and production companies in North America and Brazil. It operates through Oil and Gas, and AERO Services segments. The Oil and Gas segment produces and develops oil and natural gas interests. The AERO Services segment offers biotechnology solutions of enhanced oil recovery through a two-step process, including analysis phase, reservoir screening process that obtains field samples and evaluates potential of AERO system; and field deployment phase that deploys skid mounted injection equipment. Glori Energy Inc. was founded in 2005 and is headquartered in Houston, Texas.