Dril-Quip (DRQ) and QS Energy (QSEP) Critical Comparison

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Dril-Quip (NYSE:DRQ) and QS Energy (OTCMKTS:QSEP) are both small-cap oils/energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, earnings, analyst recommendations, valuation and risk.

Analyst Recommendations

This is a summary of recent recommendations for Dril-Quip and QS Energy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dril-Quip 2 4 0 0 1.67
QS Energy 0 0 0 0 N/A

Dril-Quip presently has a consensus target price of $45.40, indicating a potential upside of 6.67%. Given Dril-Quip’s higher possible upside, research analysts clearly believe Dril-Quip is more favorable than QS Energy.

Institutional and Insider Ownership

2.2% of QS Energy shares are held by institutional investors. 1.1% of Dril-Quip shares are held by insiders. Comparatively, 8.1% of QS 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.

Risk and Volatility

Dril-Quip has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, QS Energy has a beta of 0.38, indicating that its stock price is 62% less volatile than the S&P 500.

Profitability

This table compares Dril-Quip and QS Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dril-Quip -23.34% -1.95% -1.81%
QS Energy N/A N/A -658.89%

Earnings and Valuation

This table compares Dril-Quip and QS Energy’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 3.34 -$100.63 million $0.26 163.69
QS Energy $50,000.00 505.86 -$4.83 million N/A N/A

QS Energy has lower revenue, but higher earnings than Dril-Quip.

Summary

QS Energy beats Dril-Quip on 6 of the 10 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 QS Energy

QS Energy, Inc. develops and commercializes energy efficiency technologies in the United States and internationally. The company's energy efficiency technologies assist in meeting energy demands, enhancing the economics of oil extraction and transport, and reducing greenhouse gas emissions. Its intellectual properties include a portfolio of domestic and international patents and patents pending, which have been developed in conjunction with and licensed from Temple University of Philadelphia, Pennsylvania. The company's primary technology is Applied Oil Technology, a commercial-grade crude oil pipeline transportation flow-assurance product for the midstream pipeline marketplace. It serves upstream producers, midstream transporters, and downstream refiners. The company was formerly known as Save the World Air, Inc. and changed its name to QS Energy, Inc. in August 2015. QS Energy, Inc. was founded in 1998 and is headquartered in Tomball, Texas.

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