Subsea 7 (OTC:SUBCY) versus Natural Gas Services Group (NYSE:NGS) Financial Contrast

Subsea 7 (OTC:SUBCY) and Natural Gas Services Group (NYSE:NGS) are both oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.

Volatility & Risk

Subsea 7 has a beta of 1.7, suggesting that its stock price is 70% more volatile than the S&P 500. Comparatively, Natural Gas Services Group has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500.

Profitability

This table compares Subsea 7 and Natural Gas Services Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Subsea 7	2.46%	3.72%	1.98%
Natural Gas Services Group	10.55%	6.60%	3.29%

Institutional & Insider Ownership

0.0% of Subsea 7 shares are held by institutional investors. Comparatively, 65.6% of Natural Gas Services Group shares are held by institutional investors. 1.0% of Subsea 7 shares are held by company insiders. Comparatively, 7.3% of Natural Gas Services Group shares are held by company 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 Recommendations

This is a summary of current ratings and recommmendations for Subsea 7 and Natural Gas Services Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Subsea 7	0	1	0	0	2.00
Natural Gas Services Group	0	0	1	1	3.50

Natural Gas Services Group has a consensus target price of $26.50, suggesting a potential upside of 23.08%. Given Natural Gas Services Group’s stronger consensus rating and higher probable upside, analysts clearly believe Natural Gas Services Group is more favorable than Subsea 7.

Valuation and Earnings

This table compares Subsea 7 and Natural Gas Services Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Subsea 7	$5.97 billion	0.74	$15.40 million	$0.67	21.79
Natural Gas Services Group	$152.31 million	1.77	$4.75 million	$1.28	16.82

Subsea 7 has higher revenue and earnings than Natural Gas Services Group. Natural Gas Services Group is trading at a lower price-to-earnings ratio than Subsea 7, indicating that it is currently the more affordable of the two stocks.

Summary

Natural Gas Services Group beats Subsea 7 on 11 of the 15 factors compared between the two stocks.

About Subsea 7

Subsea 7 S.A. delivers offshore projects and services for the energy industry worldwide. It provides subsea field development products and services, including project management, design and engineering, procurement, fabrication, survey, installation, and commissioning of production facilities on the seabed and the tie-back of its facilities to fixed or floating platforms or to the shore. The company also offers engineering, procurement, commissioning, and installation of subsea umbilicals, risers, and flowlines; inspection, repair, maintenance, remote intervention, and integrity management of subsea infrastructure services; conventional services comprising fabrication, installation, extension, and refurbishment of fixed and floating platforms and associated pipelines in shallow water; and hook-up services. In addition, it operates heavy lifting operations and heavy transportation services for renewables structures; and installs offshore wind turbine foundations, as well as engages in the decommissioning of redundant offshore structures. Further, the company provides remotely operated vehicles (ROVs) and tooling services to support exploration and production activities, as well as engineering and advisory services for customers in the oil and gas, renewables, and utilities industries. The company was incorporated in 1993 and is based in Luxembourg, Luxembourg.

About Natural Gas Services Group

Natural Gas Services Group, Inc. provides natural gas compression equipment and services to the energy industry in the United States. It engineers and fabricates, operates, rents, and maintains natural gas compressors for oil and natural gas production and plant facilities. It also designs, fabricates, and assembles compressor units for rental or sale; and designs, manufactures, and sells a line of reciprocating natural gas compressor frames, cylinders, and parts. In addition, the company offers flare stacks and related ignition and control devices for the onshore and offshore incineration of gas compounds, such as hydrogen sulfide, carbon dioxide, natural gas, and liquefied petroleum gases. Further, it provides aftermarket services for its compressor and flare sales business; and exchange and rebuild program for small horsepower screw compressors. It markets its products to exploration and production companies that utilize compressor units for artificial lift applications; and oil and natural gas exploration and production companies. Natural Gas Services Group, Inc. was incorporated in 1998 and is headquartered in Midland, Texas.