Critical Comparison: Innovex International (NYSE:INVX) and Gulf Island Fabrication (NASDAQ:GIFI)

Innovex International (NYSE:INVX) and Gulf Island Fabrication (NASDAQ:GIFI) are both small-cap energy companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, valuation, risk, earnings and institutional ownership.

Volatility & Risk

Innovex International has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500. Comparatively, Gulf Island Fabrication has a beta of 0.22, meaning that its share price is 78% less volatile than the S&P 500.

Profitability

This table compares Innovex International and Gulf Island Fabrication’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Innovex International	16.68%	7.14%	5.82%
Gulf Island Fabrication	7.87%	13.50%	9.21%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Innovex International and Gulf Island Fabrication, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innovex International	1	0	0	2	3.00
Gulf Island Fabrication	0	0	0	0	0.00

Innovex International currently has a consensus target price of $13.00, suggesting a potential downside of 19.85%. Given Innovex International’s stronger consensus rating and higher possible upside, analysts plainly believe Innovex International is more favorable than Gulf Island Fabrication.

Institutional & Insider Ownership

46.4% of Gulf Island Fabrication shares are held by institutional investors. 43.9% of Innovex International shares are held by insiders. Comparatively, 20.1% of Gulf Island Fabrication shares are held by 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.

Valuation and Earnings

This table compares Innovex International and Gulf Island Fabrication”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innovex International	$660.80 million	1.69	$140.32 million	$2.62	6.19
Gulf Island Fabrication	$159.20 million	0.73	$14.74 million	$0.74	9.72

Innovex International has higher revenue and earnings than Gulf Island Fabrication. Innovex International is trading at a lower price-to-earnings ratio than Gulf Island Fabrication, indicating that it is currently the more affordable of the two stocks.

Summary

Innovex International beats Gulf Island Fabrication on 10 of the 14 factors compared between the two stocks.

About Innovex International

Innovex International, Inc. engages in the provision of solutions for both onshore and offshore applications within the oil and gas industry. The company was founded on September 15, 2016 and is headquartered in Humble, TX.

About Gulf Island Fabrication

Gulf Island Fabrication, Inc., together with its subsidiaries, operates as a fabricator of steel structures and modules in the United States. It operates through Services, Fabrication, and Shipyard divisions. The company provides maintenance, repair, construction, scaffolding, coatings, welding enclosures, and other specialty services on offshore platforms, inland structures, and industrial facilities; services required to connect production equipment and service modules, and equipment on offshore platforms; project management and commissioning services; hookup services; and civil construction and staffing services to the industrial and energy sectors, as well as undertakes municipal and drainage projects, including pump stations, levee reinforcement, bulkheads, and other public works. It also fabricates modules, skids, and piping systems for onshore refining, petrochemical, liquified natural gas (LNG), industrial, and offshore facilities; foundations, secondary steel components, and support structures for alternative energy developments and coastal mooring facilities; offshore production platforms and associated structures, including jacket foundations, piles, and topsides for fixed production and utility platforms, as well as hulls and topsides for floating production and utility platforms; and other complex steel structures and components. In addition, the company fabricates newbuild marine vessels and provides marine repair and maintenance services. The company serves international energy producers; refining, petrochemical, LNG, industrial, and power operators; and engineering, procurement, and construction companies. Gulf Island Fabrication, Inc. was incorporated in 1985 and is headquartered in The Woodlands, Texas.