Comparing Matrix Service (NASDAQ:MTRX) & Natural Gas Services Group (NYSE:NGS)

Natural Gas Services Group (NYSE:NGS) and Matrix Service (NASDAQ:MTRX) are both small-cap energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, analyst recommendations, dividends and risk.

Valuation and Earnings

This table compares Natural Gas Services Group and Matrix Service”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Natural Gas Services Group	$156.74 million	1.98	$17.23 million	$1.35	18.33
Matrix Service	$728.21 million	0.57	-$24.98 million	($0.81)	-18.41

Natural Gas Services Group has higher earnings, but lower revenue than Matrix Service. Matrix Service is trading at a lower price-to-earnings ratio than Natural Gas Services Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Natural Gas Services Group and Matrix Service’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Natural Gas Services Group	10.53%	6.99%	3.57%
Matrix Service	-3.04%	-14.08%	-4.28%

Risk & Volatility

Natural Gas Services Group has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500. Comparatively, Matrix Service has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500.

Institutional & Insider Ownership

65.6% of Natural Gas Services Group shares are owned by institutional investors. Comparatively, 78.4% of Matrix Service shares are owned by institutional investors. 7.3% of Natural Gas Services Group shares are owned by company insiders. Comparatively, 4.1% of Matrix Service shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings for Natural Gas Services Group and Matrix Service, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Natural Gas Services Group	0	0	1	1	3.50
Matrix Service	0	0	1	0	3.00

Natural Gas Services Group presently has a consensus price target of $32.50, suggesting a potential upside of 31.32%. Matrix Service has a consensus price target of $20.00, suggesting a potential upside of 34.14%. Given Matrix Service’s higher probable upside, analysts plainly believe Matrix Service is more favorable than Natural Gas Services Group.

Summary

Natural Gas Services Group beats Matrix Service on 10 of the 14 factors compared between the two stocks.

About Natural Gas Services Group

Natural Gas Services Group, Inc. provides natural gas compression equipment and services to the energy industry in the United States. It engineers and fabricates, operates, rents, and maintains natural gas compressors for oil and natural gas production and plant facilities. It also designs, fabricates, and assembles compressor units for rental or sale; and designs, manufactures, and sells a line of reciprocating natural gas compressor frames, cylinders, and parts. In addition, the company offers flare stacks and related ignition and control devices for the onshore and offshore incineration of gas compounds, such as hydrogen sulfide, carbon dioxide, natural gas, and liquefied petroleum gases. Further, it provides aftermarket services for its compressor and flare sales business; and exchange and rebuild program for small horsepower screw compressors. It markets its products to exploration and production companies that utilize compressor units for artificial lift applications; and oil and natural gas exploration and production companies. Natural Gas Services Group, Inc. was incorporated in 1998 and is headquartered in Midland, Texas.

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.