Head to Head Analysis: Oil States International (NYSE:OIS) & Matrix Service (NASDAQ:MTRX)

Oil States International (NYSE:OIS) and Matrix Service (NASDAQ:MTRX) are both small-cap energy companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, valuation, analyst recommendations, earnings and risk.

Analyst Recommendations

This is a summary of recent ratings and target prices for Oil States International and Matrix Service, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oil States International	0	2	1	0	2.33
Matrix Service	1	0	1	0	2.00

Oil States International presently has a consensus price target of $7.25, suggesting a potential upside of 16.65%. Matrix Service has a consensus price target of $17.00, suggesting a potential upside of 35.03%. Given Matrix Service’s higher possible upside, analysts clearly believe Matrix Service is more favorable than Oil States International.

Insider and Institutional Ownership

97.4% of Oil States International shares are held by institutional investors. Comparatively, 78.4% of Matrix Service shares are held by institutional investors. 6.8% of Oil States International shares are held by company insiders. Comparatively, 4.4% of Matrix Service shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Oil States International and Matrix Service’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oil States International	1.02%	2.56%	1.76%
Matrix Service	-3.83%	-17.21%	-4.71%

Valuation & Earnings

This table compares Oil States International and Matrix Service”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oil States International	$692.59 million	0.54	-$11.26 million	$0.11	56.50
Matrix Service	$769.29 million	0.46	-$29.46 million	($1.05)	-11.99

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

Risk and Volatility

Oil States International has a beta of 1.82, meaning that its stock price is 82% more volatile than the S&P 500. Comparatively, Matrix Service has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500.

Summary

Oil States International beats Matrix Service on 11 of the 13 factors compared between the two stocks.

About Oil States International

Oil States International, Inc., through its subsidiaries, provides engineered capital equipment and products for the energy, industrial, and military sectors worldwide. The company operates through three segments: Well Site Services, Downhole Technologies, and Offshore/Manufactured Products. The Well Site Services segment offers a range of equipment and services that are used to drill for, establish, and maintain the flow of oil and natural gas from a well throughout its lifecycle. It also provides wireline support, frac stacks, isolation tools, downhole and extended reach activity, well testing and flowback operations, sand control, and land drilling services. The Downhole Technologies segment provides oil and gas perforation systems, and downhole tools in support of completion, intervention, wireline, and well abandonment operations. This segment also designs, manufactures, and markets its consumable engineered products to oilfield service, and exploration and production companies. The Offshore/Manufactured Products segment designs, manufactures, and markets capital equipment utilized on floating production systems, subsea pipeline infrastructure, and offshore drilling rigs and vessels. Its products include flexible bearings, advanced connector systems, high-pressure riser systems, managed pressure drilling systems, deepwater mooring systems, cranes, subsea pipeline products, and blow-out preventer stack integration products. This segment also provides short-cycle products, such as valves, elastomers, and other specialty products that are used in the land-based drilling and completion markets; and other products for use in industrial, military, alternative energy, and other applications. In addition, it offers specialty welding, fabrication, cladding and machining, offshore installation, and inspection and repair services. The company was incorporated in 1995 and is headquartered in Houston, 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.