Analyzing Keane Group (FRAC) and Recon Technology (RCON)

Keane Group (NYSE:FRAC) and Recon Technology (NASDAQ:RCON) are both small-cap oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Profitability

This table compares Keane Group and Recon Technology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Keane Group 4.51% 25.19% 11.95%
Recon Technology -52.50% -41.66% -27.09%

Analyst Ratings

This is a summary of recent recommendations for Keane Group and Recon Technology, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Keane Group 0 1 18 0 2.95
Recon Technology 0 0 1 0 3.00

Keane Group currently has a consensus target price of $19.72, suggesting a potential upside of 116.21%. Recon Technology has a consensus target price of $2.00, suggesting a potential upside of 108.33%. Given Keane Group’s higher probable upside, research analysts plainly believe Keane Group is more favorable than Recon Technology.

Volatility & Risk

Keane Group has a beta of -0.56, indicating that its share price is 156% less volatile than the S&P 500. Comparatively, Recon Technology has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500.

Earnings and Valuation

This table compares Keane Group and Recon Technology’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Keane Group $1.54 billion 0.62 -$36.14 million $0.16 57.00
Recon Technology $12.80 million 0.88 -$6.65 million N/A N/A

Recon Technology has lower revenue, but higher earnings than Keane Group.

Insider and Institutional Ownership

89.1% of Keane Group shares are owned by institutional investors. Comparatively, 1.1% of Recon Technology shares are owned by institutional investors. 0.6% of Keane Group shares are owned by insiders. Comparatively, 28.0% of Recon Technology shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Keane Group beats Recon Technology on 7 of the 12 factors compared between the two stocks.

About Keane Group

Keane Group, Inc. provides integrated well completion services primarily in the United States. Its principal service offerings include horizontal and vertical fracturing, wireline perforation and logging, and engineered solutions, as well as other value-added services. The company also provides cementing and drilling services; and engineering software and technical guidance for remedial cementing applications and acidizing. Its customers primarily include integrated and large independent oil and natural gas exploration and production companies. The company has 26 hydraulic fracturing fleets, 31 wireline trucks, 24 cementing pumps, and other ancillary assets located in the Permian Basin, the Marcellus Shale/Utica Shale, the Eagle Ford Formation, the Bakken Formation, and other active oil and gas basins. Keane Group, Inc. was founded in 1973 and is headquartered in Houston, Texas. Keane Group, Inc. is a subsidiary of Keane Investor Holdings LLC.

About Recon Technology

Recon Technology, Ltd. provides hardware, software, and on-site services to companies in the petroleum mining and extraction industry in the People's Republic of China. The company offers equipment, tools, and other hardware related to oilfield production and management, and transportation; and develops and sells industrial automation control and information solutions. It also provides oil and gas production enhancing techniques comprising packers of fracturing; production packers; sand prevention in oil and water wells; water locating and plugging techniques; fissure shaper; fracture acidizing technique; and electronic broken-down service to resolve block-up and freezing problems. In addition, the company offers automation systems and services, including pumping unit controller that monitors the pumping units and collects data; RTU to monitor natural gas wells and collect gas well pressure data; wireless dynamometers and wireless pressure gauges; electric multi-way valves for oilfield metering station flow control; and natural gas flow computer systems. Further, it provides Recon SCADA oilfield monitor and data acquisition system for supervision and data collection; EPC service of pipeline SCADA system for pipeline monitoring and data acquisition; EPC service of oil and gas wells SCADA system for monitoring and data acquisition of oil wells and natural gas wells; EPC service of oilfield video surveillance and control system to control the oil and gas wellhead and measurement station areas; and technique service for digital oilfield transformation. Additionally, the company offers oilfield waste water treatment solutions and related chemicals; and oily sludge disposal solutions. Recon Technology, Ltd. was incorporated in 2007 and is headquartered in Beijing, the People's Republic of China.

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