Recon Technology (NASDAQ:RCON – Get Free Report) and Forum Energy Technologies (NYSE:FET – Get Free Report) are both small-cap energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.
Institutional and Insider Ownership
9.5% of Recon Technology shares are owned by institutional investors. Comparatively, 65.6% of Forum Energy Technologies shares are owned by institutional investors. 28.0% of Recon Technology shares are owned by company insiders. Comparatively, 6.9% of Forum Energy Technologies shares are owned by company 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.
Risk and Volatility
Recon Technology has a beta of 1.83, meaning that its share price is 83% more volatile than the S&P 500. Comparatively, Forum Energy Technologies has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500.
Valuation and Earnings
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Recon Technology | $9.48 million | 1.78 | -$6.86 million | N/A | N/A |
Forum Energy Technologies | $816.40 million | 0.38 | -$135.33 million | ($8.89) | -2.97 |
Recon Technology has higher earnings, but lower revenue than Forum Energy Technologies.
Profitability
This table compares Recon Technology and Forum Energy Technologies’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Recon Technology | N/A | N/A | N/A |
Forum Energy Technologies | -13.65% | -2.51% | -1.05% |
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Recon Technology and Forum Energy Technologies, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Recon Technology | 0 | 0 | 0 | 0 | 0.00 |
Forum Energy Technologies | 1 | 0 | 0 | 0 | 1.00 |
Summary
Recon Technology beats Forum Energy Technologies on 7 of the 10 factors compared between the two stocks.
About Recon Technology
Recon Technology, Ltd. provides hardware, software, and on-site services to companies in the petroleum mining and extraction industry in the People’s Republic of China. The company offers equipment, tools, and other components and parts related to oilfield production and other energy industries; and develops and sells industrial automation control and information solutions. It also provides equipment for oil and gas production and transportation, including heating furnaces and burner, as well as improvement techniques comprising packers of fracturing; production packers; sand prevention in oil and water wells; water locating and plugging techniques; fissure shaper; fracture acidizing techniques; and electronic broken-down services to resolve block-up and freezing problems. In addition, the company offers automation systems and services, including pumping unit controller that monitors the pumping units and collects data; RTU to monitor natural gas wells and collect gas well pressure data; wireless dynamometers and wireless pressure gauges; electric multi-way valves for oilfield metering station flow control; and natural gas flow computer systems. Further, it provides Recon SCADA oilfield monitor and data acquisition system for supervision and data collection; EPC service of pipeline SCADA system for pipeline monitoring and data acquisition; EPC service of oil and gas wells SCADA system for monitoring and data acquisition of oil wells and natural gas wells; EPC service of oilfield video surveillance and control system to control the oil and gas wellhead and measurement station areas; and technique service for digital oilfield transformation. Additionally, the company offers oilfield waste water treatment solutions and related chemicals; oily sludge disposal solutions; and gas station operation and management solution. Recon Technology, Ltd. was incorporated in 2007 and is headquartered in Beijing, the People’s Republic of China.
About Forum Energy Technologies
Forum Energy Technologies, Inc. designs, manufactures, and distributes products serving the oil, natural gas, industrial, and renewable energy industries in the United States and internationally. It operates through three segments: Drilling & Downhole, Completions, and Production. The Drilling & Downhole segment designs, manufactures, and supplies products, and provides related services to the drilling, well construction, artificial lift, and subsea energy construction and services markets, including applications in oil and natural gas, renewable energy, defense, and communications. This segment offers drilling technologies consisting of capital equipment and a line of products consumed in the drilling process; well construction casing and cementing equipment, and products for artificial lift equipment and cables; and subsea remotely operated vehicles and trenchers, submarine rescue vehicles, specialty components and tools, and technical services. The Completions segment offers hydraulic fracturing pumps, cooling systems, high-pressure flexible hoses, and flow iron for pressure pumping markets; wireline cable and pressure control equipment for well completion and intervention service markets; and coiled tubing strings and coiled line pipe and related services. The Production segment designs, manufactures, and supplies products, and provides related equipment and services for production and infrastructure markets. This segment offers engineered process systems, production equipment, specialty separation equipment, and various industrial valves for oil and natural gas customers, power generation, renewable energy, and other general industrial applications. The company was formerly known as Forum Oilfield Technologies, Inc. and changed its name to Forum Energy Technologies, Inc. in August 2010. Forum Energy Technologies, Inc. was incorporated in 2005 and is headquartered in Houston, Texas.
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