Critical Survey: Flotek Industries (NYSE:FTK) vs. Ranger Energy Services (NYSE:RNGR)

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

Valuation & Earnings

This table compares Flotek Industries and Ranger Energy Services”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flotek Industries	$187.02 million	2.73	$10.50 million	$0.89	19.09
Ranger Energy Services	$546.90 million	0.65	$12.30 million	$0.54	30.50

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

Institutional and Insider Ownership

10.9% of Flotek Industries shares are held by institutional investors. Comparatively, 68.1% of Ranger Energy Services shares are held by institutional investors. 3.0% of Flotek Industries shares are held by company insiders. Comparatively, 2.8% of Ranger Energy Services shares are held 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.

Profitability

This table compares Flotek Industries and Ranger Energy Services’ 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%
Ranger Energy Services	2.25%	4.54%	3.28%

Volatility & Risk

Flotek Industries has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500. Comparatively, Ranger Energy Services has a beta of 0.15, indicating that its share price is 85% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Flotek Industries and Ranger Energy Services, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flotek Industries	0	2	3	0	2.60
Ranger Energy Services	0	2	1	0	2.33

Flotek Industries currently has a consensus target price of $21.33, indicating a potential upside of 25.56%. Ranger Energy Services has a consensus target price of $13.00, indicating a potential downside of 21.07%. Given Flotek Industries’ stronger consensus rating and higher possible upside, research analysts plainly believe Flotek Industries is more favorable than Ranger Energy Services.

Summary

Flotek Industries beats Ranger Energy Services on 10 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 Ranger Energy Services

Ranger Energy Services, Inc. provides onshore high specification well service rigs, wireline services, and complementary services to exploration and production companies in the United States. It operates through three segments: High Specification Rigs, Wireline Services, and Processing Solutions and Ancillary Services. The High Specification Rigs segment offers well service rigs and complementary equipment and services to facilitate operations throughout the lifecycle of a well; and well maintenance services. This segment also has a fleet of 402 well service rigs. The Wireline Services segment provides wireline production and intervention services to provide information to identify and resolve well production problems through cased hole logging, perforating, mechanical, and pipe recovery services; wireline completion services that are used primarily for pump down perforating operations to create perforations or entry holes through the production casing; and pumping services. This segment also has a fleet of 66 wireline units and 29 high-pressure pump trucks. The Processing Solutions and Ancillary Services segment rents well service-related equipment consisting of fluid pumps, power swivels, well control packages, hydraulic catwalks, frac tanks, pipe racks, and pipe handling tools; and coiled tubing, decommissioning, and snubbing services, as well as provides proprietary and modular equipment for the processing of natural gas streams. This segment also engages in the rental, installation, commissioning, start up, operation, and maintenance of mechanical refrigeration units, nitrogen gas liquid stabilizer units, nitrogen gas liquid storage units, and related equipment. Ranger Energy Services, Inc. was incorporated in 2017 and is headquartered in Houston, Texas.