Western Energy Services (OTCMKTS:WEEEF) and Flotek Industries (NYSE:FTK) Head to Head Analysis

Western Energy Services (OTCMKTS:WEEEF) and Flotek Industries (NYSE:FTK) 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, valuation, earnings, dividends, risk, analyst recommendations and institutional ownership.

Volatility & Risk

Western Energy Services has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500. Comparatively, Flotek Industries has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Western Energy Services	-3.02%	-2.24%	-1.56%
Flotek Industries	14.48%	22.62%	12.96%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Western Energy Services and Flotek Industries, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Western Energy Services	0	0	0	0	0.00
Flotek Industries	0	1	2	2	3.20

Flotek Industries has a consensus target price of $19.50, suggesting a potential upside of 21.10%. Given Flotek Industries’ stronger consensus rating and higher possible upside, analysts clearly believe Flotek Industries is more favorable than Western Energy Services.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Western Energy Services	$162.82 million	0.32	-$5.22 million	($0.14)	-11.00
Flotek Industries	$187.02 million	2.59	$10.50 million	$0.89	18.09

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

Insider & Institutional Ownership

10.9% of Flotek Industries shares are held by institutional investors. 50.0% of Western Energy Services shares are held by insiders. Comparatively, 3.0% of Flotek Industries shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Flotek Industries beats Western Energy Services on 14 of the 15 factors compared between the two stocks.

About Western Energy Services

Western Energy Services Corp. operates as an oilfield service company in Canada and the United States. It operates through Contract Drilling and Production Services segments. The Contract Drilling segment provides contract drilling services using drilling rigs and auxiliary equipment. The Production Services segment offers well servicing rig and related equipment, as well as rental equipment services. Western Energy Services Corp. is headquartered in Calgary, Canada.

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.