Critical Review: NexTier Oilfield Solutions (NEX) versus Its Competitors

NexTier Oilfield Solutions (NYSE: NEX) is one of 36 public companies in the “Oil & gas field services, not elsewhere classified” industry, but how does it compare to its rivals? We will compare NexTier Oilfield Solutions to related companies based on the strength of its dividends, profitability, valuation, institutional ownership, risk, analyst recommendations and earnings.

Risk and Volatility

NexTier Oilfield Solutions has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500. Comparatively, NexTier Oilfield Solutions’ rivals have a beta of 1.91, meaning that their average stock price is 91% more volatile than the S&P 500.

Profitability

This table compares NexTier Oilfield Solutions and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NexTier Oilfield Solutions 0.53% 7.21% 3.25%
NexTier Oilfield Solutions Competitors -6.21% -12.62% 1.39%

Earnings & Valuation

This table compares NexTier Oilfield Solutions and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
NexTier Oilfield Solutions $2.14 billion $59.33 million 5.84
NexTier Oilfield Solutions Competitors $3.79 billion $274.40 million 8.34

NexTier Oilfield Solutions’ rivals have higher revenue and earnings than NexTier Oilfield Solutions. NexTier Oilfield Solutions is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

90.1% of NexTier Oilfield Solutions shares are held by institutional investors. Comparatively, 62.8% of shares of all “Oil & gas field services, not elsewhere classified” companies are held by institutional investors. 0.5% of NexTier Oilfield Solutions shares are held by insiders. Comparatively, 9.7% of shares of all “Oil & gas field services, not elsewhere classified” companies are held by 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 Ratings

This is a summary of recent ratings and price targets for NexTier Oilfield Solutions and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NexTier Oilfield Solutions 0 0 0 0 N/A
NexTier Oilfield Solutions Competitors 475 1819 2283 99 2.43

As a group, “Oil & gas field services, not elsewhere classified” companies have a potential upside of 85.49%. Given NexTier Oilfield Solutions’ rivals higher probable upside, analysts clearly believe NexTier Oilfield Solutions has less favorable growth aspects than its rivals.

Summary

NexTier Oilfield Solutions rivals beat NexTier Oilfield Solutions on 6 of the 10 factors compared.

NexTier Oilfield Solutions Company Profile

NexTier Oilfield Solutions Inc. provides integrated well completion services primarily in the United States. Its principal service offerings include horizontal and vertical fracturing, wireline perforation and logging, and engineered solutions. The company also provides cementing and drilling services; and engineering software and technical guidance for remedial cementing applications and acidizing. Its customers primarily include integrated and large independent oil and natural gas exploration and production companies. The company has 29 hydraulic fracturing fleets, 34 wireline trucks, 24 cementing pumps, and other ancillary assets located in the Permian Basin, the Marcellus Shale/Utica Shale, the Eagle Ford Formation, the Bakken Formation, and other active oil and gas basins. NexTier Oilfield Solutions Inc. was founded in 1973 and is headquartered in Houston, Texas. NexTier Oilfield Solutions Inc. is a subsidiary of Keane Investor Holdings LLC.

Receive News & Ratings for NexTier Oilfield Solutions Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for NexTier Oilfield Solutions and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News