Drilling Tools International (NASDAQ:DTI – Get Free Report) and Liberty Energy (NYSE:LBRT – Get Free Report) are both energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, earnings, analyst recommendations and dividends.
Insider and Institutional Ownership
2.8% of Drilling Tools International shares are held by institutional investors. Comparatively, 98.2% of Liberty Energy shares are held by institutional investors. 17.1% of Drilling Tools International shares are held by insiders. Comparatively, 2.0% of Liberty Energy shares are held by 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.
Earnings and Valuation
This table compares Drilling Tools International and Liberty Energy”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Drilling Tools International | $155.18 million | 0.39 | -$3.76 million | ($0.13) | -13.23 |
| Liberty Energy | $4.01 billion | 0.53 | $147.87 million | $0.24 | 53.88 |
Liberty Energy has higher revenue and earnings than Drilling Tools International. Drilling Tools 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.
Profitability
This table compares Drilling Tools International and Liberty Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Drilling Tools International | -3.06% | -0.40% | -0.22% |
| Liberty Energy | 0.91% | 2.13% | 0.99% |
Volatility and Risk
Drilling Tools International has a beta of -0.56, suggesting that its stock price is 156% less volatile than the S&P 500. Comparatively, Liberty Energy has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and price targets for Drilling Tools International and Liberty Energy, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Drilling Tools International | 2 | 1 | 0 | 0 | 1.33 |
| Liberty Energy | 0 | 6 | 8 | 0 | 2.57 |
Drilling Tools International presently has a consensus price target of $2.80, indicating a potential upside of 62.79%. Liberty Energy has a consensus price target of $26.42, indicating a potential upside of 104.31%. Given Liberty Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Liberty Energy is more favorable than Drilling Tools International.
Summary
Liberty Energy beats Drilling Tools International on 13 of the 14 factors compared between the two stocks.
About Drilling Tools International
Drilling Tools International Corporation (NASDAQ: DTI) provides rental tools and related services to the oil and gas drilling industry. The company supplies downhole equipment used in drilling, completion and production operations, serving exploration and production companies, drilling contractors and oilfield service providers. Its product offering includes drill pipe, drill collars, heavy-weight drill pipe, stabilizers, subs, mud motors, drilling jars and other specialized downhole tools. Drilling Tools International also provides equipment inspection, maintenance, repair, refurbishment and machining services intended to support the safe and efficient use of drilling equipment.
About Liberty Energy
Liberty Energy Inc. is a Denver-based oilfield services company that supports onshore oil and natural gas producers, primarily in the United States. Founded in 2011 as Liberty Oilfield Services, the company adopted the Liberty Energy name in 2022. Its core business is hydraulic fracturing, a well-completion technique used to extract oil and natural gas. Liberty also provides related services and equipment, including wireline operations, proppant and logistics solutions, and technologies designed to support wellsite operations.
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