Contrasting RPC (RES) & North American Construction Group (NOA)

RPC (NYSE:RES) and North American Construction Group (NYSE:NOA) are both oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, dividends and valuation.

Institutional and Insider Ownership

31.7% of RPC shares are held by institutional investors. Comparatively, 51.2% of North American Construction Group shares are held by institutional investors. 73.7% of RPC shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

RPC has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500. Comparatively, North American Construction Group has a beta of 0.36, indicating that its share price is 64% less volatile than the S&P 500.

Dividends

RPC pays an annual dividend of $0.40 per share and has a dividend yield of 2.4%. North American Construction Group pays an annual dividend of $0.06 per share and has a dividend yield of 0.5%. RPC pays out 60.6% of its earnings in the form of a dividend. North American Construction Group pays out 42.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. RPC has raised its dividend for 5 consecutive years and North American Construction Group has raised its dividend for 3 consecutive years. RPC is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for RPC and North American Construction Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RPC 1 16 2 0 2.05
North American Construction Group 0 0 1 0 3.00

RPC currently has a consensus price target of $19.33, suggesting a potential upside of 15.15%. North American Construction Group has a consensus price target of $9.00, suggesting a potential downside of 26.83%. Given RPC’s higher possible upside, analysts plainly believe RPC is more favorable than North American Construction Group.

Valuation & Earnings

This table compares RPC and North American Construction Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
RPC $1.60 billion 2.26 $162.51 million $0.66 25.44
North American Construction Group $225.58 million 1.47 $4.06 million $0.14 87.86

RPC has higher revenue and earnings than North American Construction Group. RPC is trading at a lower price-to-earnings ratio than North American Construction Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares RPC and North American Construction Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RPC 12.60% 23.23% 18.07%
North American Construction Group 3.90% 9.14% 3.50%

Summary

RPC beats North American Construction Group on 13 of the 17 factors compared between the two stocks.

RPC Company Profile

RPC, Inc. provides a range of oilfield services and equipment for the oil and gas companies involved in the exploration, production, and development of oil and gas properties. The company operates through Technical Services and Support Services segments. The Technical Services offers pressure pumping, fracturing, acidizing, downhole tools, coiled tubing, snubbing, nitrogen, well control, wireline, pump down, and fishing services that are used in the completion, production, and maintenance of oil and gas wells. The Support Services segment provides a range of rental tools, including blowout preventors, high pressure manifolds and valves, hevi-wate drill pipes, tubing products, production related rental tools, pumps, diverters, drill pipes, drill collars, handling tools, Coflexip hoses, and Wear Knot drill pipes that are used for onshore and offshore oil and gas well drilling, completion, and workover activities. This segment also offers oilfield pipe inspection, and pipe management and storage services; and oilfield training and consulting services. It operates in the United States, Africa, Canada, Argentina, China, Mexico, Eastern Europe, Latin America, the Middle East, and internationally. RPC, Inc. was founded in 1984 and is headquartered in Atlanta, Georgia.

North American Construction Group Company Profile

North American Construction Group Ltd. provides heavy construction and mining services in Canada. The company offers design build construction; project management; pre-stripping/pit pioneering; overburden removal and stockpile; muskeg removal and stockpile; site dewatering/perimeter ditching; tailings and process pipeline; haulage and access road construction; tailings dam construction and densification; mechanically stabilized earth wall; and dyke construction services. It also provides drill, blast, excavation, and haulage contract mining services; drill, blast, excavate, fill, grade, and piling site preparation services; gravel and asphalt air strip construction services; and material replacement, compaction, terrain contouring, and hydro-seeding reclamation services. The company was formerly known as North American Energy Partners Inc. and changed its name to North American Construction Group Ltd. in April 2018. North American Construction Group Ltd. was founded in 1953 and is based in Acheson, Canada.

Receive News & Ratings for RPC Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for RPC and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply