Profire Energy (NASDAQ: PFIE) and RigNet (NASDAQ:RNET) are both small-cap oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, dividends, valuation, earnings and profitabiliy.
Valuation and Earnings
This table compares Profire Energy and RigNet’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Profire Energy||$24.60 million||2.51||$2.27 million||$0.01||123.12|
|RigNet||$206.35 million||1.45||$25.82 million||($0.65)||-25.62|
RigNet has higher revenue and earnings than Profire Energy. RigNet is trading at a lower price-to-earnings ratio than Profire Energy, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Profire Energy has a beta of 1.69, meaning that its stock price is 69% more volatile than the S&P 500. Comparatively, RigNet has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500.
Institutional & Insider Ownership
19.7% of Profire Energy shares are held by institutional investors. Comparatively, 99.5% of RigNet shares are held by institutional investors. 58.7% of Profire Energy shares are held by company insiders. Comparatively, 1.2% of RigNet shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
This table compares Profire Energy and RigNet’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and recommmendations for Profire Energy and RigNet, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Profire Energy currently has a consensus price target of $2.15, indicating a potential upside of 74.80%. RigNet has a consensus price target of $20.50, indicating a potential upside of 23.12%. Given Profire Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Profire Energy is more favorable than RigNet.
Profire Energy beats RigNet on 9 of the 12 factors compared between the two stocks.
Profire Energy Company Profile
Profire Energy, Inc. is an oilfield technology company. The Company is primarily engaged in the business of developing combustion management technologies for the oil and gas industry. It specializes in the creation of burner-management systems, used on a range of oilfield natural-draft fire tube vessels. It offers burner-management systems, which help to ignite, monitor and manage the burner flame. Its solution, the PF3100, helps manage and synchronize custom applications helping oilfield producers meet deadlines through an off-the-shelf solution with dynamic customization. It also sells complementary oilfield products. Such products help manage fuel flow (such as valves and fuel trains), meter air flow (such as airplates), generate power on-site (such as solar packages), ignite and direct flame (such as flare stack igniter and nozzles), and other functions. In addition to the burner-management systems and complementary technologies, it also offers chemical-management systems.
RigNet Company Profile
RigNet, Inc. (RigNet) provides customized systems and solutions serving customers with data networking and operational requirements. The Company provides voice and data network, video conferencing and monitoring, crew welfare, asset and weather monitoring, and real-time data services. It operates through two segments: Managed Services, and Systems Integration and Automation (SI&A). The Managed Services segment provides remote communications services for offshore and onshore drilling rigs and production facilities, as well as, support vessels and other remote sites. The SI&A segment provides customized solutions for customer telecommunications systems. As of December 31, 2016, the Company provided remote communications and collaborative services to approximately 500 customers reaching approximately 900 remote sites located in approximately 50 countries on six continents. It provides managed remote communications, engineered telecommunications solutions and applications.
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