GulfMark Offshore (NYSE: GLF) and Basic Energy Services (NYSE:BAS) are both oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, valuation, profitability, analyst recommendations, dividends, earnings and institutional ownership.
Insider and Institutional Ownership
69.2% of GulfMark Offshore shares are owned by institutional investors. Comparatively, 97.4% of Basic Energy Services shares are owned by institutional investors. 25.4% of GulfMark Offshore shares are owned by insiders. Comparatively, 11.1% of Basic Energy Services shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Valuation and Earnings
This table compares GulfMark Offshore and Basic Energy Services’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Basic Energy Services||$692.45 million||0.67||-$25.85 million||($1,205.99)||-0.02|
GulfMark Offshore has higher revenue, but lower earnings than Basic Energy Services. GulfMark Offshore is trading at a lower price-to-earnings ratio than Basic Energy Services, indicating that it is currently the more affordable of the two stocks.
This table compares GulfMark Offshore and Basic Energy Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Basic Energy Services||-44.40%||-67.31%||-20.33%|
Volatility & Risk
GulfMark Offshore has a beta of 2.81, meaning that its stock price is 181% more volatile than the S&P 500. Comparatively, Basic Energy Services has a beta of 2.85, meaning that its stock price is 185% more volatile than the S&P 500.
This is a summary of current ratings and price targets for GulfMark Offshore and Basic Energy Services, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Basic Energy Services||0||5||4||0||2.44|
Basic Energy Services has a consensus price target of $27.90, indicating a potential upside of 47.62%. Given Basic Energy Services’ stronger consensus rating and higher probable upside, analysts clearly believe Basic Energy Services is more favorable than GulfMark Offshore.
Basic Energy Services beats GulfMark Offshore on 7 of the 11 factors compared between the two stocks.
About GulfMark Offshore
GulfMark Offshore, Inc. provides offshore marine support and transportation services. The Company offers these services to companies engaged in the offshore exploration and production of oil and natural gas. The Company operates in three segments: the North Sea (N. Sea), Southeast Asia (SEA) and the Americas. Its vessels transport materials, supplies and personnel to offshore facilities, as well as move and position drilling and production facilities. The operations are conducted in the North Sea, offshore Southeast Asia and offshore in the Americas. It operates a fleet of over 70 owned or managed offshore supply vessels (OSVs), which include over 30 vessels in the North Sea, over 10 vessels offshore Southeast Asia and over 30 vessels offshore the Americas. Its customers include oil and natural gas companies, independent oil and natural gas exploration and production companies working in international markets, and foreign Government-owned or controlled oil and natural gas companies.
About Basic Energy Services
Basic Energy Services, Inc. provides a range of well site services in the United States to oil and natural gas drilling and producing companies, including completion and remedial services, fluid services, well servicing and contract drilling. The Company operates through the segment, which include Completion and Remedial Services, Fluid Services, Well Servicing and Contract Drilling. The Company’s operations are managed regionally and are concentrated in the United States onshore oil and natural gas producing regions located in Texas, New Mexico, Oklahoma, Arkansas, Kansas, Louisiana, Wyoming, North Dakota, Colorado, Utah, Montana, West Virginia, California, Ohio and Pennsylvania. Its operations are focused on liquids-rich basins, as well as natural gas-focused shale plays characterized by prolific reserves. It has a presence in the Permian Basin and the Bakken, Eagle Ford, Haynesville and Marcellus shales.
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