Financial Review: Geospace Technologies (GEOS) versus Tetra Technologies (TTI)

Geospace Technologies (NASDAQ: GEOS) and Tetra Technologies (NYSE:TTI) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, profitability, institutional ownership, valuation and risk.

Analyst Ratings

This is a breakdown of current recommendations for Geospace Technologies and Tetra Technologies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Geospace Technologies 0 0 0 0 N/A
Tetra Technologies 0 3 8 0 2.73

Tetra Technologies has a consensus target price of $4.78, indicating a potential upside of 17.97%. Given Tetra Technologies’ higher probable upside, analysts clearly believe Tetra Technologies is more favorable than Geospace Technologies.

Earnings and Valuation

This table compares Geospace Technologies and Tetra Technologies’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Geospace Technologies $73.72 million 2.48 -$56.79 million ($4.32) -3.15
Tetra Technologies $694.76 million 0.68 -$161.46 million ($0.42) -9.64

Geospace Technologies has higher earnings, but lower revenue than Tetra Technologies. Tetra Technologies is trading at a lower price-to-earnings ratio than Geospace Technologies, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Geospace Technologies and Tetra Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Geospace Technologies -77.04% -26.21% -25.12%
Tetra Technologies -5.47% -6.89% -2.05%

Risk and Volatility

Geospace Technologies has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500. Comparatively, Tetra Technologies has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500.

Institutional & Insider Ownership

76.5% of Geospace Technologies shares are held by institutional investors. Comparatively, 90.6% of Tetra Technologies shares are held by institutional investors. 3.5% of Geospace Technologies shares are held by company insiders. Comparatively, 3.6% of Tetra Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Tetra Technologies beats Geospace Technologies on 9 of the 12 factors compared between the two stocks.

About Geospace Technologies

Geospace Technologies Corporation designs and manufactures instruments and equipment used by the oil and gas industry to acquire seismic data in order to locate, characterize and monitor hydrocarbon producing reservoirs. The Company also designs and manufactures non-seismic products, including industrial products, offshore cables and imaging equipment. The Company operates through two segments: Seismic and Non-Seismic. The Company’s Seismic product segments include traditional exploration products, wireless exploration products and reservoir products. Its seismic product lines consist of land and marine nodal data acquisition systems, permanent land and seabed reservoir monitoring products and services, geophones and geophone strings, hydrophones, leader wire, connectors, telemetry cables, marine streamer retrieval and steering devices and various other products. The Company’s Non-Seismic product segments include imaging and industrial products.

About Tetra Technologies

TETRA Technologies, Inc. is an oil and gas services company. The Company focuses on completion fluids and associated products and services, water management, production well testing, offshore rig cooling, compression services and equipment, and offshore services, such as decommissioning and diving. It is composed of five segments organized into four divisions: Fluids, Production Testing, Compression and Offshore. The Fluids division manufactures and markets clear brine fluids, additives and associated products and services to the oil and gas industry. Its Production Testing division provides frac flowback services, production well testing services, offshore rig cooling and other associated services in various oil and gas producing regions. The Compression division provides compression services and equipment for natural gas and oil production, gathering, transportation, processing and storage. The Offshore division consists of two operating segments: Offshore Services and Maritech.

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