Reviewing Matrix Service (NASDAQ:MTRX) and USA Compression Partners (NYSE:USAC)

USA Compression Partners (NYSE:USACGet Free Report) and Matrix Service (NASDAQ:MTRXGet Free Report) are both energy companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.

Analyst Ratings

This is a summary of recent ratings and target prices for USA Compression Partners and Matrix Service, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
USA Compression Partners 1 3 0 0 1.75
Matrix Service 0 0 1 0 3.00

USA Compression Partners currently has a consensus price target of $26.25, indicating a potential upside of 9.60%. Matrix Service has a consensus price target of $20.00, indicating a potential upside of 37.65%. Given Matrix Service’s stronger consensus rating and higher possible upside, analysts clearly believe Matrix Service is more favorable than USA Compression Partners.

Insider & Institutional Ownership

47.8% of USA Compression Partners shares are owned by institutional investors. Comparatively, 78.4% of Matrix Service shares are owned by institutional investors. 4.1% of Matrix Service shares are owned by 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.

Volatility & Risk

USA Compression Partners has a beta of 0.38, indicating that its stock price is 62% less volatile than the S&P 500. Comparatively, Matrix Service has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500.

Earnings & Valuation

This table compares USA Compression Partners and Matrix Service”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
USA Compression Partners $950.45 million 2.96 $99.57 million $0.68 35.22
Matrix Service $728.21 million 0.55 -$24.98 million ($0.81) -17.94

USA Compression Partners has higher revenue and earnings than Matrix Service. Matrix Service is trading at a lower price-to-earnings ratio than USA Compression Partners, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares USA Compression Partners and Matrix Service’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
USA Compression Partners 9.99% -81.01% 3.58%
Matrix Service -3.04% -14.08% -4.28%

About USA Compression Partners

(Get Free Report)

USA Compression Partners, LP provides compression services under term contracts with customers in the natural gas and crude oil industries in the United States. The company engineers, designs, operates, services, and repairs its compression units; and maintains related support inventory and equipment. It also provides compression services in various shale plays, including the Utica, Marcellus, Permian Basin, Delaware Basin, Eagle Ford, Mississippi Lime, Granite Wash, Woodford, Barnett, Haynesville, Niobrara, and Fayetteville shales. As of December 31, 2017, the company had approximately 1,799,781 horsepower in its fleet. It serves oil companies; and independent producers, processors, gatherers, and transporters of natural gas and crude oil. USA Compression GP, LLC operates as the general partner of USA Compression Partners, LP. The company was formerly known as Compression Holdings, LP, and changed its name to USA Compression Partners, LP in June 2011. USA Compression Partners, LP was founded in 1998 and is headquartered in Austin, Texas.

About Matrix Service

(Get Free Report)

Matrix Service Company provides engineering, fabrication, construction, and maintenance services to support critical energy infrastructure and industrial markets in the United States, Canada, and internationally. It operates through three segments: Utility and Power Infrastructure; Process and Industrial Facilities; and Storage and Terminal Solutions. The Utility and Power Infrastructure segment offers power delivery services, including construction of new substations, upgrades of existing substations, transmission and distribution line installations, and upgrades and maintenance, and emergency and storm restoration services. This segment also provides engineering, fabrication, and construction services for LNG utility peak shaving facilities; and construction and maintenance services to power generation facilities, including natural gas fired facilities. The Process and Industrial Facilities segment engages in the refining and processing of crude oil; fractionating and marketing of natural, gas and natural gas liquids; and offers plant maintenance, turnarounds, engineering, industrial cleaning services, and capital construction services. The Storage and Terminal Solutions segment undertakes work related to aboveground crude oil and refined product storage tanks and terminals; engineering, procurement, fabrication, and construction services related to cryogenic and other specialty tanks and terminals for LNG, NGLs, hydrogen, ammonia, propane, butane, liquid nitrogen/liquid oxygen, and liquid petroleum; and provides plant work, truck and rail loading/offloading facilities, and marine structures, as well as storage tank and terminal maintenance and repair. This segment also manufactures and sells precision engineered specialty tank products, including geodesic domes, aluminum internal floating roofs, floating suction and skimmer systems, roof drain systems, and floating roof seals. Matrix Service Company was founded in 1984 and is headquartered in Tulsa, Oklahoma.

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