Enerflex (EFXT) & The Competition Critical Comparison

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

Risk and Volatility

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Enerflex	3.19%	14.53%	5.89%
Enerflex Competitors	-10.93%	13.25%	1.27%

Insider and Institutional Ownership

46.5% of Enerflex shares are owned by institutional investors. Comparatively, 49.0% of shares of all “Energy Equipment & Services” companies are owned by institutional investors. 12.2% of shares of all “Energy Equipment & Services” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings for Enerflex and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enerflex	0	3	5	0	2.62
Enerflex Competitors	1673	7126	8712	468	2.44

Enerflex currently has a consensus price target of $36.00, indicating a potential upside of 74.41%. As a group, “Energy Equipment & Services” companies have a potential upside of 20.56%. Given Enerflex’s stronger consensus rating and higher probable upside, research analysts clearly believe Enerflex is more favorable than its competitors.

Earnings and Valuation

This table compares Enerflex and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Enerflex	$2.57 billion	$64.00 million	30.81
Enerflex Competitors	$3.16 billion	$26.09 million	11.50

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

Dividends

Enerflex pays an annual dividend of $0.13 per share and has a dividend yield of 0.6%. Enerflex pays out 19.4% of its earnings in the form of a dividend. As a group, “Energy Equipment & Services” companies pay a dividend yield of 2.6% and pay out 54.2% of their earnings in the form of a dividend. Enerflex has raised its dividend for 1 consecutive years.

Summary

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

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.