Reviewing Enerflex (EFXT) and Its Competitors

Enerflex (NYSE:EFXT) is one of 178 publicly-traded companies in the “Energy Equipment & Services” industry, but how does it compare to its rivals? We will compare Enerflex to related companies based on the strength of its analyst recommendations, risk, earnings, valuation, profitability, institutional ownership and dividends.

Volatility & Risk

Enerflex has a beta of 1.86, indicating that its stock price is 86% more volatile than the S&P 500. Comparatively, Enerflex’s rivals have a beta of 0.76, indicating that their average stock price is 24% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Enerflex and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enerflex	1	2	5	0	2.50
Enerflex Competitors	1692	7167	8761	473	2.44

Enerflex presently has a consensus price target of $35.17, suggesting a potential upside of 78.30%. As a group, “Energy Equipment & Services” companies have a potential upside of 19.07%. Given Enerflex’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Enerflex is more favorable than its rivals.

Dividends

Enerflex pays an annual dividend of $0.12 per share and has a dividend yield of 0.6%. Enerflex pays out 27.9% of its earnings in the form of a dividend. As a group, “Energy Equipment & Services” companies pay a dividend yield of -1.9% and pay out -40.9% of their earnings in the form of a dividend. Enerflex has increased its dividend for 1 consecutive years.

Valuation & Earnings

This table compares Enerflex and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Enerflex	$2.57 billion	$64.00 million	45.87
Enerflex Competitors	$3.15 billion	$26.09 million	26.10

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

Profitability

This table compares Enerflex and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Enerflex	2.06%	11.76%	4.84%
Enerflex Competitors	-11.47%	6.17%	1.47%

Institutional & Insider Ownership

46.5% of Enerflex shares are held by institutional investors. Comparatively, 49.1% of shares of all “Energy Equipment & Services” companies are held by institutional investors. 12.3% of shares of all “Energy Equipment & Services” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Enerflex beats its rivals on 10 of the 15 factors compared.

Enerflex Company Profile

Enerflex Ltd. offers energy infrastructure and energy transition solutions to natural gas markets in North America, Latin America, and the Eastern Hemisphere. The company provides natural gas compression infrastructure, processing, and treated water infrastructure under contract to oil and natural gas customers; power generation rental solutions; custom and standard compression packages for reciprocating and screw compressor applications; re-engineering, re-configuration, and re-packaging of compressors for various field applications; integrated turnkey power generation, gas compression, processing facilities, natural gas compression, processing, and electric power solutions; after-market mechanical services and parts distribution, as well as maintenance solutions to the oil and natural gas industry, operations, and overhaul services; and equipment supply, parts supply, and general asset management. It also designs, engineers, manufactures, constructs, and installs modular natural gas processing equipment, low-carbon solutions, cryogenic systems, electric power solutions, and treated water solutions; and engages in the engineering, design, procurement, project management, and construction services for compression, process, treated water, and power generation equipment, as well as after-market service, parts, and operations and maintenance services for gas compression, processing, and treated water facilities in the region. The company was formerly known as Enerflex Systems Income Fund and changed its name to Enerflex Ltd. in January 2010. Enerflex Ltd. was founded in 1980 and is headquartered in Calgary, Canada.