Saipem (OTCMKTS:SAPMY) & ChampionX (NASDAQ:CHX) Critical Analysis

ChampionX (NASDAQ:CHX) and Saipem (OTCMKTS:SAPMY) are both energy companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, earnings, institutional ownership and profitability.

Analyst Recommendations

This is a breakdown of current recommendations for ChampionX and Saipem, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ChampionX	0	2	3	0	2.60
Saipem	0	0	0	0	N/A

ChampionX currently has a consensus price target of $39.00, indicating a potential upside of 31.53%. Given ChampionX’s higher probable upside, analysts clearly believe ChampionX is more favorable than Saipem.

Earnings and Valuation

This table compares ChampionX and Saipem”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ChampionX	$3.70 billion	1.53	$314.24 million	$1.84	16.11
Saipem	N/A	N/A	N/A	$0.32	1.28

ChampionX has higher revenue and earnings than Saipem. Saipem is trading at a lower price-to-earnings ratio than ChampionX, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

99.0% of ChampionX shares are owned by institutional investors. Comparatively, 0.0% of Saipem shares are owned by institutional investors. 1.4% of ChampionX shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares ChampionX and Saipem’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ChampionX	8.66%	19.72%	10.17%
Saipem	N/A	N/A	N/A

Summary

ChampionX beats Saipem on 10 of the 10 factors compared between the two stocks.

About ChampionX

ChampionX Corporation provides chemistry solutions, artificial lift systems, and engineered equipment and technologies to oil and gas companies worldwide. The company operates through four segments: Production Chemical Technologies, Production & Automation Technologies, Drilling Technologies, and Reservoir Chemical Technologies. The Production Chemical Technologies segment offers onshore, offshore, and oil sands chemical solutions, such as corrosion inhibitors, scale inhibitors, emulsion breakers, and biocides to oil and natural gas production and midstream markets to manage and control corrosion, oil and water separation, flow assurance, sour gas treatment, and water-related issues. The Production & Automation Technologies segment provides artificial lift equipment, end-to-end digital automation solutions, and other production equipment and emissions monitoring solutions, including electrical submersible pumping systems, gas lift systems, jet pumps, multiplex surface pumps, plunger lift equipment, progressive cavity pumping systems, downhole rod lift systems, methane emissions monitoring solutions, chemical injection systems, flow control valves, and gauges under the Harbison-Fischer, Norris, Alberta Oil Tool, Oil Lift Technology, PCS Ferguson, Pro-Rod, Upco, Unbridled ESP, Norriseal-Wellmark, Quartzdyne, Spirit, Theta, Timberline, and Windrock brands. The Drilling Technologies segment offers polycrystalline diamond cutter inserts, bearings, valves, nozzles, and mining tools used in oil and gas drill bits under the US Synthetic brand; and high-density ceramic roof bolt mining tools for underground mining operations. The Reservoir Chemical Technologies segment provides chemistry-oriented solutions and technologies for well drilling, cementing, fracturing, acidizing, and other well interventions, as well as fracturing, drilling, cementing, acidizing additives. The company was founded in 1882 and is headquartered in The Woodlands, Texas.

About Saipem

Saipem SpA provides energy and infrastructure solutions worldwide. The company operates through Asset Based Services, Offshore Drilling, and Energy Carriers segments. It offers development of subsea fields and pipelaying; installation and lifting of offshore structures; and engineering, implementation, installation, maintenance, modification, and decommissioning activities. The company also engages in onshore engineering and construction, sustainable infrastructures, and robotics and industrialized solutions; and offshore engineering and construction, and wind activities. In addition, the company provides procurement, construction, project management, and engineering integrated services to the oil and gas, civil and marine infrastructure, and environmental markets. Saipem S.p.A. was founded in 1957 and is headquartered in Milan, Italy.