Comparing ProFrac (NASDAQ:ACDC) and Flotek Industries (NYSE:FTK)

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flotek Industries	$237.26 million	2.60	$30.53 million	$0.83	20.52
ProFrac	$1.94 billion	0.58	-$369.00 million	($2.20)	-2.82

Flotek Industries has higher earnings, but lower revenue than ProFrac. ProFrac is trading at a lower price-to-earnings ratio than Flotek Industries, 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, 12.8% of ProFrac shares are held by institutional investors. 3.0% of Flotek Industries shares are held by company insiders. Comparatively, 2.6% of ProFrac shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations for Flotek Industries and ProFrac, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flotek Industries	0	2	3	0	2.60
ProFrac	3	3	1	0	1.71

Flotek Industries presently has a consensus price target of $21.33, indicating a potential upside of 25.28%. ProFrac has a consensus price target of $5.63, indicating a potential downside of 9.27%. Given Flotek Industries’ stronger consensus rating and higher probable upside, research analysts clearly believe Flotek Industries is more favorable than ProFrac.

Volatility and Risk

Flotek Industries has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500. Comparatively, ProFrac has a beta of 1.7, indicating that its stock price is 70% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Flotek Industries	12.87%	21.32%	11.41%
ProFrac	-18.97%	-33.18%	-11.22%

Summary

Flotek Industries beats ProFrac 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 ProFrac

ProFrac Holding Corp. operates as a technology-focused energy services holding company in the United States. It operates through three segments: Stimulation Services, Manufacturing, and Proppant Production. The company offers hydraulic fracturing, well stimulation, in-basin frac sand, and other completion services and complementary products and services to upstream oil and natural gas companies engaged in the exploration and production of unconventional oil and natural gas resources. It also manufactures and sells high horsepower pumps, valves, piping, swivels, large-bore manifold systems, and fluid ends. ProFrac Holding Corp. was founded in 2016 and is headquartered in Willow Park, Texas.