Financial Contrast: Forum Energy Technologies (NYSE:FET) vs. Kodiak Gas Services (NYSE:KGS)

Forum Energy Technologies (NYSE:FET) and Kodiak Gas Services (NYSE:KGS) are both energy companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Profitability

This table compares Forum Energy Technologies and Kodiak Gas Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Forum Energy Technologies	-15.35%	-2.26%	-0.97%
Kodiak Gas Services	3.93%	8.49%	2.67%

Analyst Recommendations

This is a breakdown of recent recommendations for Forum Energy Technologies and Kodiak Gas Services, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Forum Energy Technologies	0	0	0	0	0.00
Kodiak Gas Services	0	1	10	0	2.91

Kodiak Gas Services has a consensus target price of $40.64, indicating a potential upside of 30.47%. Given Kodiak Gas Services’ stronger consensus rating and higher possible upside, analysts plainly believe Kodiak Gas Services is more favorable than Forum Energy Technologies.

Institutional & Insider Ownership

65.6% of Forum Energy Technologies shares are held by institutional investors. Comparatively, 25.0% of Kodiak Gas Services shares are held by institutional investors. 6.9% of Forum Energy Technologies shares are held by insiders. Comparatively, 0.3% of Kodiak Gas Services shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Forum Energy Technologies and Kodiak Gas Services”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Forum Energy Technologies	$816.40 million	0.29	-$135.33 million	($10.04)	-1.91
Kodiak Gas Services	$1.16 billion	2.38	$49.90 million	$0.53	58.76

Kodiak Gas Services has higher revenue and earnings than Forum Energy Technologies. Forum Energy Technologies is trading at a lower price-to-earnings ratio than Kodiak Gas Services, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Forum Energy Technologies has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, Kodiak Gas Services has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500.

Summary

Kodiak Gas Services beats Forum Energy Technologies on 12 of the 14 factors compared between the two stocks.

About Forum Energy Technologies

Forum Energy Technologies, Inc. designs, manufactures, and distributes products serving the oil, natural gas, industrial, and renewable energy industries in the United States and internationally. It operates through three segments: Drilling & Downhole, Completions, and Production. The Drilling & Downhole segment designs, manufactures, and supplies products, and provides related services to the drilling, well construction, artificial lift, and subsea energy construction and services markets, including applications in oil and natural gas, renewable energy, defense, and communications. This segment offers drilling technologies consisting of capital equipment and a line of products consumed in the drilling process; well construction casing and cementing equipment, and products for artificial lift equipment and cables; and subsea remotely operated vehicles and trenchers, submarine rescue vehicles, specialty components and tools, and technical services. The Completions segment offers hydraulic fracturing pumps, cooling systems, high-pressure flexible hoses, and flow iron for pressure pumping markets; wireline cable and pressure control equipment for well completion and intervention service markets; and coiled tubing strings and coiled line pipe and related services. The Production segment designs, manufactures, and supplies products, and provides related equipment and services for production and infrastructure markets. This segment offers engineered process systems, production equipment, specialty separation equipment, and various industrial valves for oil and natural gas customers, power generation, renewable energy, and other general industrial applications. The company was formerly known as Forum Oilfield Technologies, Inc. and changed its name to Forum Energy Technologies, Inc. in August 2010. Forum Energy Technologies, Inc. was incorporated in 2005 and is headquartered in Houston, Texas.

About Kodiak Gas Services

Kodiak Gas Services, Inc. operates contract compression infrastructure for customers in the oil and gas industry in the United States. It operates in two segments, Compression Operations and Other Services. The Compression Operations segment operates company-owned and customer-owned compression infrastructure to enable the production, gathering, and transportation of natural gas and oil. The Other Services segment provides a range of contract services, including station construction, maintenance and overhaul, and other ancillary time and material-based offerings. The company was formerly known as Frontier TopCo, Inc. Kodiak Gas Services, Inc. was founded in 2010 and is headquartered in The Woodlands, Texas.