Head to Head Comparison: Dril-Quip (DRQ) versus Solaris Oilfield Infrastructure (SOI)

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Dril-Quip (NYSE: DRQ) and Solaris Oilfield Infrastructure (NYSE:SOI) are both small-cap oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, institutional ownership, profitability and risk.

Earnings and Valuation

This table compares Dril-Quip and Solaris Oilfield Infrastructure’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dril-Quip $455.47 million 4.30 -$100.63 million $0.26 197.50
Solaris Oilfield Infrastructure $67.39 million 10.21 $7.30 million $0.48 30.33

Solaris Oilfield Infrastructure has lower revenue, but higher earnings than Dril-Quip. Solaris Oilfield Infrastructure is trading at a lower price-to-earnings ratio than Dril-Quip, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Dril-Quip and Solaris Oilfield Infrastructure’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dril-Quip -24.83% -0.26% -0.25%
Solaris Oilfield Infrastructure 10.28% 13.49% 11.43%

Institutional and Insider Ownership

73.4% of Solaris Oilfield Infrastructure shares are owned by institutional investors. 1.1% of Dril-Quip shares are owned by company insiders. Comparatively, 14.4% of Solaris Oilfield Infrastructure shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for Dril-Quip and Solaris Oilfield Infrastructure, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dril-Quip 0 7 2 0 2.22
Solaris Oilfield Infrastructure 0 1 7 0 2.88

Dril-Quip currently has a consensus price target of $47.14, indicating a potential downside of 8.19%. Solaris Oilfield Infrastructure has a consensus price target of $22.40, indicating a potential upside of 53.85%. Given Solaris Oilfield Infrastructure’s stronger consensus rating and higher probable upside, analysts plainly believe Solaris Oilfield Infrastructure is more favorable than Dril-Quip.

Summary

Solaris Oilfield Infrastructure beats Dril-Quip on 11 of the 13 factors compared between the two stocks.

About Dril-Quip

Dril-Quip, Inc., together with its subsidiaries, designs, manufactures, sells, and services onshore and offshore drilling and production equipment for use in deepwater, harsh environment, and severe service applications worldwide. It operates through three segments: Western Hemisphere, Eastern Hemisphere, and Asia-Pacific. The company's principal products include subsea and surface wellheads, subsea and surface production trees, subsea control systems and manifolds, mudline hanger systems, specialty connectors and associated pipes, drilling and production riser systems, liner hangers, wellhead connectors, diverters, and safety valves, as well as consumable downhole products. It also provides technical advisory services, and rework and reconditioning services, as well as rental and purchase of running tools for use in the installation and retrieval of the its products. The company's products are used to explore for oil and gas from offshore drilling rigs, such as floating rigs and jack-up rigs; and for drilling and production of oil and gas wells on offshore platforms, tension leg platforms, and Spars, as well as moored vessels, such as floating production, storage, and offloading monohull moored vessels. It sells its products directly through its sales personnel, independent sales agents, and representatives to integrated, independent, and foreign national oil and gas companies, as well as drilling contractors, and engineering and construction companies. Dril-Quip, Inc. was founded in 1981 and is headquartered in Houston, Texas.

About Solaris Oilfield Infrastructure

Solaris Oilfield Infrastructure, Inc. manufactures and sells patented mobile proppant management systems to unload, store, and deliver proppant at oil and natural gas well sites in the United States. The company's systems are designed for transferring large quantities of proppant to the well sites. It also provides real-time inventory management solutions for proppant mining, rail shipping, and transloading operations. The company serves oil and natural gas exploration and production, as well as oilfield service companies. Solaris Oilfield Infrastructure, Inc. was founded in 2014 and is based in Houston, Texas.

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