Comparing Petrofac (OTCMKTS:POFCY) and TechnipFMC (NYSE:FTI)

TechnipFMC (NYSE:FTI) and Petrofac (OTCMKTS:POFCY) are both energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, profitability, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for TechnipFMC and Petrofac, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TechnipFMC	0	3	11	1	2.87
Petrofac	0	0	0	0	0.00

TechnipFMC presently has a consensus price target of $38.92, indicating a potential downside of 1.96%. Given TechnipFMC’s stronger consensus rating and higher possible upside, analysts clearly believe TechnipFMC is more favorable than Petrofac.

Valuation and Earnings

This table compares TechnipFMC and Petrofac”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TechnipFMC	$9.08 billion	1.80	$842.90 million	$2.12	18.73
Petrofac	$2.50 billion	0.05	-$505.00 million	N/A	N/A

TechnipFMC has higher revenue and earnings than Petrofac.

Profitability

This table compares TechnipFMC and Petrofac’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TechnipFMC	9.60%	29.42%	9.54%
Petrofac	N/A	N/A	N/A

Risk & Volatility

TechnipFMC has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500. Comparatively, Petrofac has a beta of 2.91, meaning that its share price is 191% more volatile than the S&P 500.

Institutional & Insider Ownership

96.6% of TechnipFMC shares are held by institutional investors. 1.8% of TechnipFMC shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

TechnipFMC beats Petrofac on 12 of the 13 factors compared between the two stocks.

About TechnipFMC

TechnipFMC plc engages in the energy projects, technologies, and systems and services businesses in Europe, Central Asia, North America, Latin America, the Asia Pacific, Africa, the Middle East, and internationally. It operates through two segments: Subsea and Surface Technologies. The Subsea segment engages in the design, engineering, procurement, manufacturing, fabrication, installation, and life of field services for subsea systems, subsea field infrastructure, and subsea pipe systems used in oil and gas production and transportation. It provides subsea production and processing system; flexible pipe; subsea umbilicals, risers, and flowlines; vessels; robotics; well and asset services; and Subsea Studio for optimizing the development, execution, and operation of current and future subsea fields. The Surface Technologies segment designs, manufactures, and services products and systems used in land and shallow water exploration and production of crude oil and natural gas. This segment offers drilling; surface wellheads and production trees systems; iComplete, a pressure control system; fracturing tree and manifold systems; flexible pipes; safety and integrity systems, multiphase meter modules, in-line separation and processing systems, and standard pumps; well control and integrity systems; separation and processing systems; skid systems; and flow measurement and automation solutions. It also offers planning, testing and installation, commissioning, operations, replacement and upgrade, maintenance, storage, preservation, intervention, integrity, decommissioning, and abandonment; and supplies flowline products and services. TechnipFMC plc was founded in 1884 and is headquartered in Houston, Texas.

About Petrofac

Petrofac Limited designs, builds, manages, and maintains infrastructure for the energy industries in the United Kingdom, Algeria, Thailand, Oman, Kuwait, Iraq, the United Arab Emirates, the Netherlands, and internationally. It operates through three segments: Engineering & Construction (E&C); Asset Solutions; and Integrated Energy Services (IES). The E&C segment provides onshore and offshore engineering, procurement, construction, installation, and commissioning services. The Asset Solutions segment offers concept, feasibility, and front-end engineering design services, as well as manages and maintains onshore and offshore operations. The IES segment focuses on delivering value from the existing asset portfolio. The company was founded in 1981 and is based in St Helier, Jersey.