Drilling Tools International (NASDAQ:DTI) and RPC (NYSE:RES) Financial Contrast

Drilling Tools International (NASDAQ:DTI) and RPC (NYSE:RES) are both small-cap energy companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Insider and Institutional Ownership

2.8% of Drilling Tools International shares are held by institutional investors. Comparatively, 41.1% of RPC shares are held by institutional investors. 56.5% of Drilling Tools International shares are held by insiders. Comparatively, 60.5% of RPC shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Drilling Tools International and RPC”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Drilling Tools International	$154.45 million	0.91	$3.01 million	($0.19)	-21.05
RPC	$1.63 billion	0.83	$32.08 million	$0.15	40.63

RPC has higher revenue and earnings than Drilling Tools International. Drilling Tools International is trading at a lower price-to-earnings ratio than RPC, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Drilling Tools International has a beta of -0.35, indicating that its stock price is 135% less volatile than the S&P 500. Comparatively, RPC has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500.

Profitability

This table compares Drilling Tools International and RPC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Drilling Tools International	-3.93%	1.12%	0.60%
RPC	1.97%	5.24%	3.97%

Analyst Recommendations

This is a breakdown of recent recommendations for Drilling Tools International and RPC, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Drilling Tools International	1	1	0	0	1.50
RPC	1	4	0	0	1.80

RPC has a consensus target price of $5.25, suggesting a potential downside of 13.86%. Given RPC’s stronger consensus rating and higher possible upside, analysts clearly believe RPC is more favorable than Drilling Tools International.

Summary

RPC beats Drilling Tools International on 12 of the 13 factors compared between the two stocks.

About Drilling Tools International

Drilling Tools International Corporation provides oilfield equipment and services to oil and natural gas sectors in North America, Europe, and the Middle East. It offers downhole tool rentals, machining, and inspection services to support the global drilling and wellbore construction industry. The company also provides products are bottom hole assembly components, such as stabilizers, subs, non-magnetic and steel drill collars, hole openers, and roller reamers, as well as drill pipe and drill pipe accessories; ancillary equipment and handling tools to support its rental platform, including float valves, ring gauges, tool baskets, lift bail, lift subs, mud magnets, elevators, bracket and bail assemblies, slips, tongs, stabbing guides and safety clamps; and blowout preventers, and pressure control accessory equipment. In addition, it offers tool rental services, which consists of rental, inspection, machining, and repair services; rents downhole drilling tools used in horizontal and directional drilling of oil and natural gas; rents kellys, pip joints, work strings; maintains a fleet of rental equipment consisting of drill collars, stabilizers, crossover subs, wellbore conditioning tools, drill pipe, hevi-wate drill pipe, and tubing; rents surface control equipment, such as blowout preventers and handling tools; and provides downhole products for producing wells. Drilling Tools International Corporation is headquartered in Houston, Texas.

About RPC

RPC, Inc., through its subsidiaries, engages provision of a range of oilfield services and equipment for the oil and gas companies involved in the exploration, production, and development of oil and gas properties. The company operates through Technical Services and Support Services segments. The Technical Services segment offers pressure pumping, fracturing, acidizing, cementing, downhole tools, coiled tubing, snubbing, nitrogen, well control, wireline, pump down, and fishing services that are used in the completion, production, and maintenance of oil and gas wells. The Support Services segment provides a range of rental tools for onshore and offshore oil and gas well drilling, completion, and workover activities. This segment also offers oilfield pipe inspection, and pipe management and storage services, as well as well control training and consulting services. It operates in the United States, Africa, Canada, Argentina, China, Mexico, Latin America, the Middle East, and internationally. The company was incorporated in 1984 and is headquartered in Atlanta, Georgia.