Head to Head Analysis: RPC (NYSE:RES) vs. Smart Sand (NASDAQ:SND)

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

Profitability

This table compares Smart Sand and RPC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Smart Sand	-7.15%	-8.30%	-5.86%
RPC	3.77%	5.65%	4.42%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Smart Sand and RPC, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smart Sand	0	0	0	0	0.00
RPC	1	3	0	0	1.75

RPC has a consensus target price of $4.9375, indicating a potential upside of 7.81%. Given RPC’s stronger consensus rating and higher possible upside, analysts plainly believe RPC is more favorable than Smart Sand.

Risk and Volatility

Smart Sand has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500. Comparatively, RPC has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500.

Institutional and Insider Ownership

35.2% of Smart Sand shares are owned by institutional investors. Comparatively, 41.1% of RPC shares are owned by institutional investors. 32.3% of Smart Sand 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, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Smart Sand and RPC”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Smart Sand	$311.37 million	0.27	$2.99 million	($0.54)	-3.56
RPC	$1.42 billion	0.71	$91.44 million	$0.26	17.62

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

Summary

RPC beats Smart Sand on 13 of the 13 factors compared between the two stocks.

About Smart Sand

Smart Sand, Inc., an integrated frac and industrial sand supply and services company, engages in the excavation, processing, and sale of sands or proppant for use in hydraulic fracturing operations in the oil and gas industry in the United States. It also provides proppant logistics services; and wellsite storage solutions through SmartSystems products and services. The company sells its products primarily to oil and natural gas exploration and production companies, oilfield service companies, and industrial manufacturers. Smart Sand, Inc. was incorporated in 2011 and is headquartered in Spring, 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.