Reviewing RPC (NYSE:RES) & Tetra Technologies (NYSE:TTI)

Tetra Technologies (NYSE:TTI) and RPC (NYSE:RES) are both small-cap energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership.

Institutional and Insider Ownership

70.2% of Tetra Technologies shares are owned by institutional investors. Comparatively, 41.1% of RPC shares are owned by institutional investors. 5.8% of Tetra Technologies shares are owned by company insiders. Comparatively, 60.5% of RPC shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Tetra Technologies and RPC”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tetra Technologies	$599.11 million	0.91	$108.28 million	$0.84	4.88
RPC	$1.43 billion	0.72	$91.44 million	$0.26	17.88

Tetra Technologies has higher earnings, but lower revenue than RPC. Tetra Technologies is trading at a lower price-to-earnings ratio than RPC, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Tetra Technologies has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500. Comparatively, RPC has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Tetra Technologies and RPC, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tetra Technologies	0	0	2	1	3.33
RPC	1	3	0	0	1.75

Tetra Technologies presently has a consensus price target of $5.75, indicating a potential upside of 40.42%. RPC has a consensus price target of $4.94, indicating a potential upside of 6.18%. Given Tetra Technologies’ stronger consensus rating and higher possible upside, equities analysts plainly believe Tetra Technologies is more favorable than RPC.

Profitability

This table compares Tetra Technologies and RPC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tetra Technologies	18.95%	14.10%	5.78%
RPC	3.77%	5.65%	4.42%

Summary

Tetra Technologies beats RPC on 12 of the 15 factors compared between the two stocks.

About Tetra Technologies

TETRA Technologies, Inc., together with its subsidiaries, operates as an energy services and solutions company. It operates through two segments, Completion Fluids & Products Division and Water & Flowback Services. The Completion Fluids & Products segment manufactures and markets clear brine fluids, additives, and associated products and services to the oil and gas industry for use in well drilling, completion, and workover operations in the United States, as well as in Latin America, Europe, Asia, the Middle East, and Africa. This segment also markets liquid and dry calcium chloride products; and TETRA PureFlow ultra-pure zinc bromide to battery technology companies. The Water & Flowback Services segment provides water management services for onshore oil and gas operators. This segment also offers frac flowback, production well testing, and other associated services in oil and gas producing regions in the United States, as well as in various basins in Latin America, Africa, Europe, and the Middle East. TETRA Technologies, Inc. was incorporated in 1981 and is headquartered in The Woodlands, Texas.

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.