Matrix Service (NASDAQ:MTRX) versus Coil Tubing Technology (OTCMKTS:CTBG) Critical Analysis

Matrix Service (NASDAQ:MTRX) and Coil Tubing Technology (OTCMKTS:CTBG) are both energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.

Volatility & Risk

Matrix Service has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500. Comparatively, Coil Tubing Technology has a beta of 0.28, meaning that its share price is 72% less volatile than the S&P 500.

Valuation & Earnings

This table compares Matrix Service and Coil Tubing Technology”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Matrix Service	$728.21 million	0.54	-$24.98 million	($0.81)	-17.60
Coil Tubing Technology	N/A	N/A	N/A	N/A	N/A

Coil Tubing Technology has lower revenue, but higher earnings than Matrix Service.

Insider & Institutional Ownership

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 hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Matrix Service and Coil Tubing Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Matrix Service	-3.04%	-14.08%	-4.28%
Coil Tubing Technology	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and price targets for Matrix Service and Coil Tubing Technology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Matrix Service	0	0	1	0	3.00
Coil Tubing Technology	0	0	0	0	0.00

Matrix Service currently has a consensus price target of $20.00, indicating a potential upside of 40.25%. Given Matrix Service’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Matrix Service is more favorable than Coil Tubing Technology.

Summary

Matrix Service beats Coil Tubing Technology on 7 of the 10 factors compared between the two stocks.

About Matrix Service

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.

About Coil Tubing Technology

Coil Tubing Technology, Inc., a coil tubing company, focuses on the development, marketing, and rental of advanced tools and related technical solutions for use with coil tubing and jointed pipe in the bottom hole assembly for the exploration and production of hydrocarbons worldwide. The company's products include jar accelerator, extended reach, bi-directional jar, jet hammer, jet motor, spinning wash, bumper sub, vibrational agitation, and indexing tools. Its products are used in thru-tubing fishing, thru-tubing workover and intervention, pipeline clean out, and coil tubing lateral drillout operations. The company was founded in 1999 and is headquartered in Houston, Texas.