Analyzing Oil States International (NYSE:OIS) and Liberty Energy (NYSE:LBRT)

Liberty Energy (NYSE:LBRT) and Oil States International (NYSE:OIS) are both energy companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, risk, analyst recommendations, earnings and institutional ownership.

Earnings and Valuation

This table compares Liberty Energy and Oil States International”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Liberty Energy	$4.01 billion	0.53	$147.87 million	$0.24	53.85
Oil States International	$650.25 million	0.78	-$109.38 million	($1.87)	-4.55

Liberty Energy has higher revenue and earnings than Oil States International. Oil States International is trading at a lower price-to-earnings ratio than Liberty Energy, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Liberty Energy and Oil States International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Liberty Energy	0	6	8	0	2.57
Oil States International	1	1	2	0	2.25

Liberty Energy currently has a consensus target price of $26.42, indicating a potential upside of 104.38%. Oil States International has a consensus target price of $12.00, indicating a potential upside of 40.93%. Given Liberty Energy’s stronger consensus rating and higher probable upside, analysts plainly believe Liberty Energy is more favorable than Oil States International.

Volatility & Risk

Liberty Energy has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, Oil States International has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500.

Profitability

This table compares Liberty Energy and Oil States International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Liberty Energy	0.91%	2.13%	0.99%
Oil States International	-16.47%	5.13%	3.45%

Institutional & Insider Ownership

98.2% of Liberty Energy shares are owned by institutional investors. Comparatively, 97.4% of Oil States International shares are owned by institutional investors. 2.0% of Liberty Energy shares are owned by insiders. Comparatively, 7.6% of Oil States International 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.

Summary

Liberty Energy beats Oil States International on 9 of the 14 factors compared between the two stocks.

About Liberty Energy

Liberty Energy Inc. provides hydraulic services and related technologies to onshore oil and natural gas exploration, and production companies in North America. The company offers hydraulic fracturing services, including complementary services, such as wireline services, proppant delivery solutions, field gas processing and treating, compressed natural gas (CNG) delivery, data analytics, related goods comprising sand mine operations, and technologies; and well site fueling and logistics. As of as of December 31, 2023, the company owned and operated a fleet of approximately 40 active hydraulic fracturing; and two sand mines in the Permian Basin. In addition, the company provides services primarily in the Permian Basin, the Williston Basin, the Eagle Ford Shale, the Haynesville Shale, the Appalachian Basin (Marcellus Shale and Utica Shale), the Western Canadian Sedimentary Basin, the Denver-Julesburg Basin (the DJ Basin), and the Anadarko Basin. Liberty Energy Inc. was formerly known as Liberty Oilfield Services Inc. and changed its name to Liberty Energy Inc. in April 2022. The company was founded in 2011 and is headquartered in Denver, Colorado.

About Oil States International

Oil States International, Inc., through its subsidiaries, provides engineered capital equipment and products for the energy, industrial, and military sectors worldwide. The company operates through three segments: Well Site Services, Downhole Technologies, and Offshore/Manufactured Products. The Well Site Services segment offers a range of equipment and services that are used to drill for, establish, and maintain the flow of oil and natural gas from a well throughout its lifecycle. It also provides wireline support, frac stacks, isolation tools, downhole and extended reach activity, well testing and flowback operations, sand control, and land drilling services. The Downhole Technologies segment provides oil and gas perforation systems, and downhole tools in support of completion, intervention, wireline, and well abandonment operations. This segment also designs, manufactures, and markets its consumable engineered products to oilfield service, and exploration and production companies. The Offshore/Manufactured Products segment designs, manufactures, and markets capital equipment utilized on floating production systems, subsea pipeline infrastructure, and offshore drilling rigs and vessels. Its products include flexible bearings, advanced connector systems, high-pressure riser systems, managed pressure drilling systems, deepwater mooring systems, cranes, subsea pipeline products, and blow-out preventer stack integration products. This segment also provides short-cycle products, such as valves, elastomers, and other specialty products that are used in the land-based drilling and completion markets; and other products for use in industrial, military, alternative energy, and other applications. In addition, it offers specialty welding, fabrication, cladding and machining, offshore installation, and inspection and repair services. The company was incorporated in 1995 and is headquartered in Houston, Texas.