Reviewing USA Compression Partners (NYSE:USAC) and Mammoth Energy Services (NASDAQ:TUSK)

USA Compression Partners (NYSE:USAC) and Mammoth Energy Services (NASDAQ:TUSK) are both energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and target prices for USA Compression Partners and Mammoth Energy Services, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
USA Compression Partners	0	5	0	1	2.33
Mammoth Energy Services	1	0	0	0	1.00

USA Compression Partners presently has a consensus price target of $29.50, indicating a potential upside of 7.16%. Given USA Compression Partners’ stronger consensus rating and higher possible upside, equities research analysts clearly believe USA Compression Partners is more favorable than Mammoth Energy Services.

Risk and Volatility

USA Compression Partners has a beta of 0.23, meaning that its share price is 77% less volatile than the S&P 500. Comparatively, Mammoth Energy Services has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500.

Profitability

This table compares USA Compression Partners and Mammoth Energy Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
USA Compression Partners	12.43%	179.77%	4.83%
Mammoth Energy Services	0.98%	-8.10%	-6.14%

Earnings & Valuation

This table compares USA Compression Partners and Mammoth Energy Services”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
USA Compression Partners	$998.10 million	4.00	$111.32 million	$1.06	25.97
Mammoth Energy Services	$68.39 million	2.24	$4.60 million	$0.02	159.50

USA Compression Partners has higher revenue and earnings than Mammoth Energy Services. USA Compression Partners is trading at a lower price-to-earnings ratio than Mammoth Energy Services, indicating that it is currently the more affordable of the two stocks.

Dividends

USA Compression Partners pays an annual dividend of $2.10 per share and has a dividend yield of 7.6%. Mammoth Energy Services pays an annual dividend of $0.50 per share and has a dividend yield of 15.7%. USA Compression Partners pays out 198.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Mammoth Energy Services pays out 2,500.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional & Insider Ownership

47.8% of USA Compression Partners shares are owned by institutional investors. Comparatively, 79.7% of Mammoth Energy Services shares are owned by institutional investors. 2.0% of Mammoth Energy Services shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

USA Compression Partners beats Mammoth Energy Services on 11 of the 16 factors compared between the two stocks.

About USA Compression Partners

USA Compression Partners, LP provides compression services under term contracts with customers in the natural gas and crude oil industries in the United States. The company engineers, designs, operates, services, and repairs its compression units; and maintains related support inventory and equipment. It also provides compression services in various shale plays, including the Utica, Marcellus, Permian Basin, Delaware Basin, Eagle Ford, Mississippi Lime, Granite Wash, Woodford, Barnett, Haynesville, Niobrara, and Fayetteville shales. As of December 31, 2017, the company had approximately 1,799,781 horsepower in its fleet. It serves oil companies; and independent producers, processors, gatherers, and transporters of natural gas and crude oil. USA Compression GP, LLC operates as the general partner of USA Compression Partners, LP. The company was formerly known as Compression Holdings, LP, and changed its name to USA Compression Partners, LP in June 2011. USA Compression Partners, LP was founded in 1998 and is headquartered in Austin, Texas.

About Mammoth Energy Services

Mammoth Energy Services, Inc. operates as an energy services company in the United States, Canada, and internationally. The company operates in four segments: Well Completion Services, Infrastructure Services, Natural Sand Proppant Services, and Drilling Services. The company offers pressure pumping and hydraulic fracturing, sand hauling, and water transfer services; and master services agreements. It also provides a range of services on electric transmission and distribution, and networks and substation facilities, including engineering, design, construction, upgrade, maintenance, and repair of high voltage transmission lines, substations, and lower voltage overhead and underground distribution systems; storm repair and restoration services; and commercial services comprising installation, maintenance, and repair of commercial wiring. In addition, the company mines, processes, and sells natural sand proppant used for hydraulic fracturing; buys processed sand from suppliers on the spot market for resale; and provides logistics solutions to facilitate delivery of frac sand products. Further, it offers contract land and directional drilling services; and rig moving services. Additionally, the company offers aviation services, equipment rental, remote accommodation, and equipment manufacturing services. It serves government-funded, private, public investor-owned, and co-operative utilities; independent oil and natural gas producers; and land-based drilling contractors. The company was formerly known as Mammoth Energy Partners LP and changed its name to Mammoth Energy Services, Inc. in October 2016. Mammoth Energy Services, Inc. was founded in 2014 and is headquartered in Oklahoma City, Oklahoma.