Analyzing ProFrac (NASDAQ:ACDC) and Enerflex (NYSE:EFXT)

Enerflex (NYSE:EFXT) and ProFrac (NASDAQ:ACDC) are both energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, earnings, profitability and risk.

Risk and Volatility

Enerflex has a beta of 1.8, indicating that its stock price is 80% more volatile than the S&P 500. Comparatively, ProFrac has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500.

Valuation & Earnings

This table compares Enerflex and ProFrac”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enerflex	$2.57 billion	1.15	$64.00 million	$0.43	56.47
ProFrac	$1.79 billion	0.49	-$369.00 million	($2.33)	-2.08

Enerflex has higher revenue and earnings than ProFrac. ProFrac is trading at a lower price-to-earnings ratio than Enerflex, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations for Enerflex and ProFrac, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enerflex	1	2	5	1	2.67
ProFrac	2	2	1	0	1.80

Enerflex presently has a consensus price target of $36.00, suggesting a potential upside of 48.27%. ProFrac has a consensus price target of $5.25, suggesting a potential upside of 8.09%. Given Enerflex’s stronger consensus rating and higher possible upside, research analysts plainly believe Enerflex is more favorable than ProFrac.

Profitability

This table compares Enerflex and ProFrac’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Enerflex	2.06%	11.76%	4.84%
ProFrac	-22.83%	-45.18%	-13.61%

Institutional and Insider Ownership

46.5% of Enerflex shares are owned by institutional investors. Comparatively, 12.8% of ProFrac shares are owned by institutional investors. 2.2% of ProFrac shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Enerflex beats ProFrac on 14 of the 15 factors compared between the two stocks.

About Enerflex

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.

About ProFrac

ProFrac Holding Corp. operates as a technology-focused energy services holding company in the United States. It operates through three segments: Stimulation Services, Manufacturing, and Proppant Production. The company offers hydraulic fracturing, well stimulation, in-basin frac sand, and other completion services and complementary products and services to upstream oil and natural gas companies engaged in the exploration and production of unconventional oil and natural gas resources. It also manufactures and sells high horsepower pumps, valves, piping, swivels, large-bore manifold systems, and fluid ends. ProFrac Holding Corp. was founded in 2016 and is headquartered in Willow Park, Texas.