Deep Down (DPDW) and DistributionNOW (DNOW) Critical Comparison

Deep Down (OTCMKTS: DPDW) and DistributionNOW (NYSE:DNOW) are both small-cap oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, dividends, risk, profitability, analyst recommendations, earnings and institutional ownership.

Analyst Recommendations

This is a summary of recent recommendations for Deep Down and DistributionNOW, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Deep Down 0 0 0 0 N/A
DistributionNOW 0 7 4 0 2.36

DistributionNOW has a consensus target price of $12.60, suggesting a potential upside of 5.44%. Given DistributionNOW’s higher probable upside, analysts clearly believe DistributionNOW is more favorable than Deep Down.

Profitability

This table compares Deep Down and DistributionNOW’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Deep Down -0.60% -0.51% -0.47%
DistributionNOW -1.96% -2.46% -1.68%

Valuation & Earnings

This table compares Deep Down and DistributionNOW’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Deep Down $19.48 million 0.62 -$100,000.00 N/A N/A
DistributionNOW $2.65 billion 0.49 -$52.00 million ($0.27) -44.26

Deep Down has higher earnings, but lower revenue than DistributionNOW.

Institutional & Insider Ownership

8.7% of Deep Down shares are owned by institutional investors. 2.1% of DistributionNOW shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

Deep Down has a beta of -0.5, indicating that its stock price is 150% less volatile than the S&P 500. Comparatively, DistributionNOW has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500.

Summary

Deep Down beats DistributionNOW on 6 of the 11 factors compared between the two stocks.

Deep Down Company Profile

Deep Down, Inc., an oilfield services company, provides specialized services to the offshore energy industry to support deepwater and ultra-deepwater exploration, development, and production of oil and gas, and other maritime operations in the United States. The company offers engineering and management services, including the design, installation, and retrieval of subsea equipment and systems; connection and termination operations services; well-commissioning services; and construction support and remote operated vehicles (ROV) operations support services. It also provides project management and engineering; spooling; testing and commissioning; storage management; ROV and ROV tooling services comprising platform inspection, platform installation and abandonment, search and recovery, salvage, subsea sampling and intervention, telecommunication cable inspection, anchor handling, ROV consulting and project management, ROV pilots and technicians, and underwater cinematography services; and recovered subsea distribution assets refurbishment and repurposing services, as well as offers support for offshore interventions. In addition, the company offers installation support equipment, and component parts and assemblies for subsea distribution systems, including flying leads, umbilical hardware, installation aids, riser isolation valves and subsea isolation valves, and buoyancy and non-helical umbilical products. It serves oil and gas companies, subsea equipment manufacturers, subsea equipment installation contractors, offshore drilling contractors, engineering and construction companies, and other companies involved in maritime operations. Deep Down, Inc. was founded in 1997 and is headquartered in Houston, Texas.

DistributionNOW Company Profile

NOW Inc. distributes energy and industrial products in the United States, Canada, and internationally. It offers consumable maintenance, repair, and operating supplies; and pipes, valves, fittings, flanges, gaskets, fasteners, electrical products, instrumentations, artificial lift, pumping solutions, valve actuation and modular process, measurement and control equipment, process equipment, pumps, OEM parts, coatings, mill supplies, and safety supplies, as well as provides application systems, work processes, parts integration, optimization solutions, and after-sales support services. The company also provides supply chain and materials management solutions that include procurement, inventory and warehouse management, logistics, point of issue technology, project management, business process, and performance metrics reporting. It offers its products under the DistributionNOW and Wilson Export brand names. The company serves customers in the upstream, midstream, and downstream sectors of the energy industry, including drilling contractors, well servicing companies, independent and national oil and gas companies, midstream operators, and refineries, as well as petrochemical, chemical, utilities, and other downstream energy processors; and industrial and manufacturing companies. NOW Inc. was incorporated in 2013 and is headquartered in Houston, Texas.

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