Critical Review: Flotek Industries (NYSE:FTK) versus NXT Energy Solutions (OTCMKTS:NSFDF)

Flotek Industries (NYSE:FTKGet Free Report) and NXT Energy Solutions (OTCMKTS:NSFDFGet Free Report) are both small-cap energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, earnings, risk, dividends and valuation.

Volatility and Risk

Flotek Industries has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500. Comparatively, NXT Energy Solutions has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Flotek Industries and NXT Energy Solutions, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Flotek Industries 0 1 3 1 3.00
NXT Energy Solutions 0 0 0 0 0.00

Flotek Industries currently has a consensus target price of $14.33, indicating a potential downside of 11.88%. Given Flotek Industries’ stronger consensus rating and higher probable upside, analysts clearly believe Flotek Industries is more favorable than NXT Energy Solutions.

Institutional and Insider Ownership

10.9% of Flotek Industries shares are held by institutional investors. Comparatively, 26.2% of NXT Energy Solutions shares are held by institutional investors. 3.0% of Flotek Industries shares are held by company insiders. Comparatively, 34.1% of NXT Energy Solutions shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Flotek Industries and NXT Energy Solutions”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Flotek Industries $187.02 million 2.60 $10.50 million $0.44 36.97
NXT Energy Solutions $470,000.00 72.06 -$6.62 million ($0.04) -7.75

Flotek Industries has higher revenue and earnings than NXT Energy Solutions. NXT Energy Solutions is trading at a lower price-to-earnings ratio than Flotek Industries, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Flotek Industries and NXT Energy Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Flotek Industries 6.59% 17.67% 10.86%
NXT Energy Solutions N/A -65.19% -22.05%

Summary

Flotek Industries beats NXT Energy Solutions on 11 of the 15 factors compared between the two stocks.

About Flotek Industries

(Get Free Report)

Flotek Industries, Inc. operates as a technology-driven green chemistry and data company that serves customers across industrial and commercial markets in the United States, the United Arab Emirates, and internationally. It operates through two segments: Chemistry Technologies (CT) and Data Analytics (DA). The CT segment designs, develops, manufactures, packages, distributes, delivers, and markets green specialty chemicals that enhance the profitability of hydrocarbon producers, as well as green specialty chemistries, and logistics and technology services. This segment primarily serves integrated oil and gas, oilfield services, independent oil and gas, national and state-owned oil, geothermal energy, solar energy, and alternative energy companies. The DA segment designs, develops, produces, sells, and supports equipment and services that create and provide valuable information on the composition and properties of energy customers' hydrocarbon fluids. It sells its products directly through a mix of in-house sales professionals, as well as contractual agency agreements. Flotek Industries, Inc. was incorporated in 1985 and is headquartered in Houston, Texas.

About NXT Energy Solutions

(Get Free Report)

NXT Energy Solutions Inc., a technology company, provides services to the oil and gas industry through its proprietary stress field detection (SFD) technology worldwide. Its SFD technology, a remote sensing airborne survey system utilizes quantum-scale sensors to detect gravity field perturbations in an airborne survey method which can be used onshore and offshore to remotely identify traps and reservoirs with hydrocarbon and geothermal exploration potential. The company was formerly known as Energy Exploration Technologies Inc. and changed its name to NXT Energy Solutions Inc. in September 2008. NXT Energy Solutions Inc. was incorporated in 1994 and is headquartered in Calgary, Canada.

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