Critical Review: Solaris Oilfield Infrastructure (NYSE:SOI) & Drilling Tools International (NASDAQ:DTI)

Solaris Oilfield Infrastructure (NYSE:SOI) and Drilling Tools International (NASDAQ:DTI) are both small-cap oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, earnings, profitability and valuation.

Valuation & Earnings

This table compares Solaris Oilfield Infrastructure and Drilling Tools International’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Solaris Oilfield Infrastructure	$292.95 million	1.25	$24.34 million	$0.77	11.03
Drilling Tools International	$152.03 million	0.90	$14.75 million	N/A	N/A

Solaris Oilfield Infrastructure has higher revenue and earnings than Drilling Tools International.

Risk & Volatility

Solaris Oilfield Infrastructure has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500. Comparatively, Drilling Tools International has a beta of -0.43, indicating that its stock price is 143% less volatile than the S&P 500.

Insider & Institutional Ownership

67.4% of Solaris Oilfield Infrastructure shares are held by institutional investors. Comparatively, 2.8% of Drilling Tools International shares are held by institutional investors. 34.7% of Solaris Oilfield Infrastructure shares are held by company insiders. Comparatively, 14.7% of Drilling Tools International shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and price targets for Solaris Oilfield Infrastructure and Drilling Tools International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solaris Oilfield Infrastructure	0	2	1	0	2.33
Drilling Tools International	0	1	0	0	2.00

Solaris Oilfield Infrastructure currently has a consensus target price of $12.00, suggesting a potential upside of 41.26%. Drilling Tools International has a consensus target price of $3.00, suggesting a potential downside of 35.06%. Given Solaris Oilfield Infrastructure’s stronger consensus rating and higher possible upside, research analysts clearly believe Solaris Oilfield Infrastructure is more favorable than Drilling Tools International.

Profitability

This table compares Solaris Oilfield Infrastructure and Drilling Tools International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Solaris Oilfield Infrastructure	8.31%	12.01%	7.86%
Drilling Tools International	9.70%	20.30%	11.50%

Summary

Solaris Oilfield Infrastructure beats Drilling Tools International on 9 of the 12 factors compared between the two stocks.

About Solaris Oilfield Infrastructure

Solaris Oilfield Infrastructure, Inc. designs and manufactures specialized equipment for oil and natural gas operators in the United States. The company provides mobile proppant and fluid management systems, as well as last mile logistics management services. It offers systems, mobilization, and last mile logistics services that are used to unload, store, and deliver proppant, water and/or chemicals at oil and natural gas well sites. The company is also involved in the transloading and storage of proppant or railcars at its transloading facility. In addition, it develops Railtronix, an inventory management software; and all-electric equipment that automates the low pressure section of oil and gas well completion sites. The company serves exploration and production, and oilfield services industries. Solaris Oilfield Infrastructure, Inc. was founded in 2014 and is headquartered in Houston, Texas.

About Drilling Tools International

Drilling Tools International Corporation provides oilfield equipment and services to oil and natural gas sectors in North America, Europe, and the Middle East. It offers downhole tool rentals, machining, and inspection services to support the global drilling and wellbore construction industry. The company also provides products are bottom hole assembly components, such as stabilizers, subs, non-magnetic and steel drill collars, hole openers, and roller reamers, as well as drill pipe and drill pipe accessories; ancillary equipment and handling tools to support its rental platform, including float valves, ring gauges, tool baskets, lift bail, lift subs, mud magnets, elevators, bracket and bail assemblies, slips, tongs, stabbing guides and safety clamps; and blowout preventers, and pressure control accessory equipment. In addition, it offers tool rental services, which consists of rental, inspection, machining, and repair services; rents downhole drilling tools used in horizontal and directional drilling of oil and natural gas; rents kellys, pip joints, work strings; maintains a fleet of rental equipment consisting of drill collars, stabilizers, crossover subs, wellbore conditioning tools, drill pipe, hevi-wate drill pipe, and tubing; rents surface control equipment, such as blowout preventers and handling tools; and provides downhole products for producing wells. Drilling Tools International Corporation is headquartered in Houston, Texas.