Head-To-Head Review: Drilling Tools International (NASDAQ:DTI) & Dawson Geophysical (NASDAQ:DWSN)

Drilling Tools International (NASDAQ:DTI) and Dawson Geophysical (NASDAQ:DWSN) are both small-cap energy companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, earnings, risk, dividends, valuation, analyst recommendations and profitability.

Institutional & Insider Ownership

2.8% of Drilling Tools International shares are owned by institutional investors. Comparatively, 7.9% of Dawson Geophysical shares are owned by institutional investors. 56.5% of Drilling Tools International shares are owned by insiders. Comparatively, 0.3% of Dawson Geophysical shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for Drilling Tools International and Dawson Geophysical, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Drilling Tools International	2	0	1	0	1.67
Dawson Geophysical	1	0	0	0	1.00

Drilling Tools International currently has a consensus price target of $5.50, suggesting a potential upside of 144.44%. Given Drilling Tools International’s stronger consensus rating and higher possible upside, equities analysts clearly believe Drilling Tools International is more favorable than Dawson Geophysical.

Earnings & Valuation

This table compares Drilling Tools International and Dawson Geophysical”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Drilling Tools International	$154.45 million	0.52	$3.01 million	($0.13)	-17.31
Dawson Geophysical	$74.15 million	0.75	-$4.12 million	($0.26)	-6.85

Drilling Tools International has higher revenue and earnings than Dawson Geophysical. Drilling Tools International is trading at a lower price-to-earnings ratio than Dawson Geophysical, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Drilling Tools International and Dawson Geophysical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Drilling Tools International	-2.81%	4.29%	2.32%
Dawson Geophysical	-13.89%	-44.29%	-22.22%

Volatility & Risk

Drilling Tools International has a beta of -0.37, indicating that its stock price is 137% less volatile than the S&P 500. Comparatively, Dawson Geophysical has a beta of -0.03, indicating that its stock price is 103% less volatile than the S&P 500.

Summary

Drilling Tools International beats Dawson Geophysical on 10 of the 14 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 Dawson Geophysical

Dawson Geophysical Company provides onshore seismic data acquisition and processing services in the United States and Canada. The company acquires and processes 2-D, 3-D, and multi-component seismic data for its clients, including oil and gas companies, and independent oil and gas operators, as well as providers of multi-client data libraries and carbon capture sequestration projects. Its seismic crews supply seismic data primarily to companies engaged in the exploration and development of oil and natural gas on land and in land-to-water transition areas, as well as potash mining industry. The company was founded in 1952 and is headquartered in Midland, Texas. Dawson Geophysical Company is a subsidiary of Wilks Brothers, LLC.