ProPetro (NYSE:PUMP) & Flotek Industries (NYSE:FTK) Head-To-Head Analysis

Flotek Industries (NYSE:FTK) and ProPetro (NYSE:PUMP) are both small-cap energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, profitability, risk, analyst recommendations, valuation, earnings and institutional ownership.

Volatility and Risk

Flotek Industries has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500. Comparatively, ProPetro has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.

Profitability

This table compares Flotek Industries and ProPetro’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Flotek Industries	14.48%	22.62%	12.96%
ProPetro	-1.31%	-0.06%	-0.04%

Institutional and Insider Ownership

10.9% of Flotek Industries shares are held by institutional investors. Comparatively, 84.7% of ProPetro shares are held by institutional investors. 3.0% of Flotek Industries shares are held by company insiders. Comparatively, 1.6% of ProPetro shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Flotek Industries and ProPetro”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flotek Industries	$187.02 million	2.79	$10.50 million	$0.89	19.50
ProPetro	$1.44 billion	0.81	-$137.86 million	($0.17)	-66.35

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

Analyst Ratings

This is a breakdown of current ratings for Flotek Industries and ProPetro, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flotek Industries	0	2	3	0	2.60
ProPetro	1	4	4	0	2.33

Flotek Industries currently has a consensus price target of $21.33, suggesting a potential upside of 22.92%. ProPetro has a consensus price target of $12.67, suggesting a potential upside of 12.30%. Given Flotek Industries’ stronger consensus rating and higher probable upside, analysts plainly believe Flotek Industries is more favorable than ProPetro.

Summary

Flotek Industries beats ProPetro on 11 of the 14 factors compared between the two stocks.

About Flotek Industries

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 ProPetro

ProPetro Holding Corp. operates as an integrated oilfield services company. The company provides hydraulic fracturing, wireline, cementing, and other complementary oilfield completion services to upstream oil and gas companies in the Permian Basin. ProPetro Holding Corp. was founded in 2007 and is headquartered in Midland, Texas.