Analyzing Freestone Resources (OTCMKTS:FSNR) and Drilling Tools International (NASDAQ:DTI)

Drilling Tools International (NASDAQ:DTI) and Freestone Resources (OTCMKTS:FSNR) are both oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, dividends, analyst recommendations, earnings and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Drilling Tools International	7.85%	16.64%	9.96%
Freestone Resources	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Drilling Tools International and Freestone Resources, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Drilling Tools International	0	1	1	0	2.50
Freestone Resources	0	0	0	0	N/A

Drilling Tools International presently has a consensus price target of $5.25, suggesting a potential upside of 33.25%. Given Drilling Tools International’s higher possible upside, equities research analysts plainly believe Drilling Tools International is more favorable than Freestone Resources.

Institutional & Insider Ownership

2.8% of Drilling Tools International shares are held by institutional investors. 14.7% of Drilling Tools International shares are held by company insiders. Comparatively, 13.3% of Freestone Resources shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Drilling Tools International and Freestone Resources”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Drilling Tools International	$152.03 million	0.90	$14.75 million	$0.43	9.16
Freestone Resources	N/A	N/A	N/A	N/A	N/A

Drilling Tools International has higher revenue and earnings than Freestone Resources.

Summary

Drilling Tools International beats Freestone Resources on 8 of the 8 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 Freestone Resources

Freestone Resources, Inc. is an oil and gas technology development company, which engages in the development and marketing of technologies and solvents. The company was founded on January 22, 1997 and is headquartered in Ennis, TX.