Innovex International (NYSE:INVX) versus USA Compression Partners (NYSE:USAC) Head-To-Head Survey

USA Compression Partners (NYSE:USAC) and Innovex International (NYSE:INVX) are both energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, dividends, institutional ownership, profitability and analyst recommendations.

Analyst Ratings

This is a breakdown of current recommendations and price targets for USA Compression Partners and Innovex International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
USA Compression Partners	1	3	0	0	1.75
Innovex International	1	0	1	2	3.00

USA Compression Partners currently has a consensus target price of $26.25, suggesting a potential upside of 8.79%. Innovex International has a consensus target price of $16.50, suggesting a potential upside of 2.17%. Given USA Compression Partners’ higher probable upside, equities analysts clearly believe USA Compression Partners is more favorable than Innovex International.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
USA Compression Partners	9.56%	-69.11%	3.59%
Innovex International	16.66%	8.58%	6.92%

Institutional and Insider Ownership

47.8% of USA Compression Partners shares are held by institutional investors. 43.9% of Innovex International shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares USA Compression Partners and Innovex International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
USA Compression Partners	$950.45 million	3.11	$99.57 million	$0.67	36.01
Innovex International	$660.80 million	1.68	$140.32 million	$2.89	5.59

Innovex International has lower revenue, but higher earnings than USA Compression Partners. Innovex International 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.

Risk and Volatility

USA Compression Partners has a beta of 0.36, suggesting that its stock price is 64% less volatile than the S&P 500. Comparatively, Innovex International has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500.

Summary

Innovex International beats USA Compression Partners on 10 of the 15 factors compared between the two stocks.

About USA Compression Partners

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 Innovex International

Innovex International, Inc. engages in the provision of solutions for both onshore and offshore applications within the oil and gas industry. The company was founded on September 15, 2016 and is headquartered in Humble, TX.