National-Oilwell Varco (NYSE: NOV) and Newpark Resources (NYSE:NR) are both oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.
Insider & Institutional Ownership
94.0% of National-Oilwell Varco shares are owned by institutional investors. Comparatively, 96.9% of Newpark Resources shares are owned by institutional investors. 0.8% of National-Oilwell Varco shares are owned by company insiders. Comparatively, 4.8% of Newpark Resources shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares National-Oilwell Varco and Newpark Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
National-Oilwell Varco has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500. Comparatively, Newpark Resources has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500.
This is a summary of current recommendations and price targets for National-Oilwell Varco and Newpark Resources, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
National-Oilwell Varco presently has a consensus price target of $40.22, indicating a potential downside of 17.28%. Newpark Resources has a consensus price target of $11.00, indicating a potential downside of 0.45%. Given Newpark Resources’ stronger consensus rating and higher probable upside, analysts clearly believe Newpark Resources is more favorable than National-Oilwell Varco.
National-Oilwell Varco pays an annual dividend of $0.20 per share and has a dividend yield of 0.4%. Newpark Resources does not pay a dividend. National-Oilwell Varco pays out -47.6% of its earnings in the form of a dividend.
Valuation and Earnings
This table compares National-Oilwell Varco and Newpark Resources’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|National-Oilwell Varco||$7.30 billion||2.54||-$237.00 million||($0.42)||-115.76|
|Newpark Resources||$747.76 million||1.32||-$6.14 million||$0.10||110.50|
Newpark Resources has lower revenue, but higher earnings than National-Oilwell Varco. National-Oilwell Varco is trading at a lower price-to-earnings ratio than Newpark Resources, indicating that it is currently the more affordable of the two stocks.
Newpark Resources beats National-Oilwell Varco on 11 of the 16 factors compared between the two stocks.
National-Oilwell Varco Company Profile
National Oilwell Varco, Inc. designs, manufactures, and sells systems and components used in oil and gas drilling and production; and provides oilfield services to the upstream oil and gas industry worldwide. It operates through three segments: Wellbore Technologies, Completion & Production Solutions, and Rig Technologies. The Wellbore Technologies segment designs, manufactures, rents, and sells various equipment and technologies. This segment also provides solids control and waste management equipment and services, drilling and completion fluids, data acquisition and analytics, water management solutions, managed-pressure-drilling systems, and wellsite logistics solutions; tubular inspection, repair and coating, rope access inspection, and instrumentation services; and power generation equipment, drill and wired pipes, instruments, measuring and monitoring equipment, downhole and fishing tools, hole openers, and drill bits The Completion & Production Solutions segment designs, manufactures, and sells pumping trucks, blenders, sanders, hydration units, injection units, flowline, and manifolds; coiled tubing units, coiled tubing, and wireline units and tools; composite pipe, surface transfer and progressive cavity pumps, and artificial lift systems; and floating production systems and subsea production technologies. The Rig Technologies segment offers land rigs; offshore drilling equipment packages; and drilling rig components It provides substructures, derricks, and masts; cranes; pipe lifting, racking, rotating, and assembly systems; fluid transfer technologies, such as mud pumps; pressure control equipment, including blowout preventers; power transmission systems comprising drives and generators; and rig instrumentation and control systems. This segment also offers spare parts; and repair and rental services, as well as remote equipment monitoring, technical support, field, and training services. The company was founded in 1862 and is based in Houston, Texas.
Newpark Resources Company Profile
Newpark Resources, Inc. provides products, rentals, and services primarily to the oil and gas exploration and production industry. It operates through two segments, Fluids Systems, and Mats and Integrated Services. The Fluids Systems segment provides drilling fluids products and technical services to customers in the North America, Europe, the Middle East and Africa, Latin America, and the Asia Pacific regions. The Mats and Integrated Services segment offers composite mat rentals, site construction, and related site services to customers in various markets, including oil and gas exploration and production, electrical transmission and distribution, pipeline, solar, petrochemical, and construction across the United States, Canada, Europe, and internationally. The company was founded in 1932 and is based in The Woodlands, Texas.
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