Financial Analysis: Innovex International (INVX) versus Its Rivals

Innovex International (NYSE:INVX) is one of 25 publicly-traded companies in the “Oil & gas field machinery” industry, but how does it contrast to its competitors? We will compare Innovex International to similar companies based on the strength of its dividends, institutional ownership, profitability, valuation, risk, analyst recommendations and earnings.

Profitability

This table compares Innovex International and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Innovex International	12.31%	-0.73%	-0.61%
Innovex International Competitors	2.62%	7.27%	4.56%

Earnings and Valuation

This table compares Innovex International and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Innovex International	$550.34 million	$600,000.00	9.91
Innovex International Competitors	$4.39 billion	-$154.22 million	12.42

Innovex International’s competitors have higher revenue, but lower earnings than Innovex International. Innovex International is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

73.2% of shares of all “Oil & gas field machinery” companies are held by institutional investors. 3.1% of Innovex International shares are held by insiders. Comparatively, 11.9% of shares of all “Oil & gas field machinery” companies 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.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Innovex International and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innovex International	1	0	0	0	1.00
Innovex International Competitors	193	1397	1690	47	2.48

Innovex International presently has a consensus target price of $15.00, suggesting a potential upside of 7.37%. As a group, “Oil & gas field machinery” companies have a potential upside of 27.06%. Given Innovex International’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Innovex International has less favorable growth aspects than its competitors.

Risk and Volatility

Innovex International has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500. Comparatively, Innovex International’s competitors have a beta of 1.42, indicating that their average share price is 42% more volatile than the S&P 500.

Summary

Innovex International competitors beat Innovex International on 11 of the 13 factors compared.

About Innovex International

Innovex Downhole Solutions Inc. designs, manufactures and installs mission-critical drilling & deployment, well construction, completion, production and fishing & intervention solutions to support upstream onshore and offshore activities. Innovex Downhole Solutions Inc., formerly known as Dril-Quip, is based in HOUSTON.