Exterran (EXTN) vs. National-Oilwell Varco (NOV) Head to Head Comparison

Exterran (NYSE: EXTN) and National-Oilwell Varco (NYSE:NOV) are both oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, risk, institutional ownership, profitability, valuation and earnings.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Exterran and National-Oilwell Varco, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Exterran 0 1 0 0 2.00
National-Oilwell Varco 3 17 6 0 2.12

Exterran currently has a consensus price target of $28.00, indicating a potential upside of 0.32%. National-Oilwell Varco has a consensus price target of $37.76, indicating a potential upside of 6.70%. Given National-Oilwell Varco’s stronger consensus rating and higher possible upside, analysts clearly believe National-Oilwell Varco is more favorable than Exterran.

Volatility and Risk

Exterran has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500. Comparatively, National-Oilwell Varco has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500.

Dividends

National-Oilwell Varco pays an annual dividend of $0.20 per share and has a dividend yield of 0.6%. Exterran does not pay a dividend. National-Oilwell Varco pays out -8.1% of its earnings in the form of a dividend.

Profitability

This table compares Exterran and National-Oilwell Varco’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Exterran 0.04% -2.82% -1.11%
National-Oilwell Varco -13.33% -1.41% -0.94%

Institutional and Insider Ownership

88.2% of Exterran shares are owned by institutional investors. Comparatively, 91.8% of National-Oilwell Varco shares are owned by institutional investors. 2.2% of Exterran shares are owned by company insiders. Comparatively, 0.6% of National-Oilwell Varco shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Exterran and National-Oilwell Varco’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Exterran $1.03 billion 0.97 -$227.93 million ($0.02) -1,395.50
National-Oilwell Varco $7.25 billion 1.85 -$2.41 billion ($2.48) -14.27

Exterran has higher earnings, but lower revenue than National-Oilwell Varco. Exterran is trading at a lower price-to-earnings ratio than National-Oilwell Varco, indicating that it is currently the more affordable of the two stocks.

Summary

National-Oilwell Varco beats Exterran on 12 of the 16 factors compared between the two stocks.

Exterran Company Profile

Exterran Corporation provides compression, production and processing products and services that support the production and transportation of oil and natural gas around the world. The Company operates through three segments: contract operations, aftermarket services, and oil and gas product sales. The contract operations segment provides natural gas compression services, production and processing equipment services, and maintenance services to meet specific customer requirements on assets owned by it. The aftermarket services segment provides a range of services to support the surface production, compression and processing needs of customers, from parts sales and normal maintenance services to full operation of a customer’s owned assets. The oil and gas product sales segment provides design, engineering, manufacturing, installation and sale of natural gas compression units, and accessories and equipment used in the production, treating and processing of crude oil and natural gas.

National-Oilwell Varco Company Profile

National Oilwell Varco, Inc. is an oilfield equipment manufacturer and technology provider. The Company operates through four segments: Rig Systems, Rig Aftermarket, Wellbore Technologies and Completion & Production Solutions. The Rig Systems segment makes and supports the capital equipment and integrated systems needed to drill oil and gas wells on land and offshore. The Rig Systems segment designs, manufactures and sells land rigs, offshore drilling equipment packages, and drilling rig components. The Rig Aftermarket segment provides aftermarket products and services to support a large installed base of land and offshore rigs, and drilling rig components manufactured by the Company’s Rig Systems segment. The Wellbore Technologies segment designs, manufactures, rents and sells a range of equipment and technologies used to perform drilling operations. The Completion & Production Solutions segment integrates technologies for well completions and oil and gas production.

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