Quintana Energy Services (NYSE:QES) vs. Basic Energy Services (NYSE:BASX) Financial Analysis

Quintana Energy Services (NYSE:QES) and Basic Energy Services (OTCMKTS:BASX) are both small-cap oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, analyst recommendations, risk and institutional ownership.

Insider and Institutional Ownership

14.6% of Quintana Energy Services shares are held by institutional investors. Comparatively, 0.1% of Basic Energy Services shares are held by institutional investors. 30.4% of Quintana Energy Services shares are held by company insiders. Comparatively, 0.5% of Basic Energy Services shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Quintana Energy Services has a beta of 2.72, suggesting that its share price is 172% more volatile than the S&P 500. Comparatively, Basic Energy Services has a beta of 2.28, suggesting that its share price is 128% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Quintana Energy Services and Basic Energy Services, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Quintana Energy Services 0 5 0 0 2.00
Basic Energy Services 0 0 0 0 N/A

Quintana Energy Services currently has a consensus price target of $1.40, suggesting a potential upside of 50.89%. Given Quintana Energy Services’ higher probable upside, analysts clearly believe Quintana Energy Services is more favorable than Basic Energy Services.

Profitability

This table compares Quintana Energy Services and Basic Energy Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Quintana Energy Services -20.05% -32.95% -17.72%
Basic Energy Services -60.99% -199.32% -26.61%

Valuation and Earnings

This table compares Quintana Energy Services and Basic Energy Services’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Quintana Energy Services $484.28 million 0.06 -$75.44 million ($1.03) -0.90
Basic Energy Services $567.25 million 0.01 -$181.90 million N/A N/A

Quintana Energy Services has higher earnings, but lower revenue than Basic Energy Services.

Summary

Quintana Energy Services beats Basic Energy Services on 9 of the 11 factors compared between the two stocks.

Quintana Energy Services Company Profile

Quintana Energy Services Inc. provides oilfield services to onshore oil and natural gas exploration and production companies operating in conventional and unconventional plays in the United States. The company operates through four segments: Directional Drilling, Pressure Pumping, Pressure Control, and Wireline. The Directional Drilling segment provides directional, horizontal, under balanced, and measurement-while-drilling services, as well as rental tools and support services. The Pressure Pumping segment provides hydraulic fracturing stimulation services, cementing, and acidizing services for the completion, production, and maintenance of oil and gas wells. As of December 31, 2018, this segment had a pressure pumping fleet of 267,500 hydraulic horsepower. The Pressure Control segment offers coiled tubing, rig-assisted snubbing, fluid pumping, nitrogen, well control, and other pressure control related services to support completion and workover operations. This segment had a fleet of 24 coiled tubing, 36 rig-assisted snubbing, and 24 nitrogen pumping units. The Wireline segment offers pump-down services for setting plugs between hydraulic fracturing stages, as well as the deployment of perforation equipment in connection with plug-and-perf operations. This segment also provides cased-hole production logging, injection profiling, stimulation performance evaluation, and water break-through identification services; and industrial logging services for cavern, storage, and injection wells. It owned 41 wireline units. Quintana Energy Services Inc. was founded in 2017 and is headquartered in Houston, Texas.

Basic Energy Services Company Profile

Basic Energy Services, Inc. provides wellsite services to oil and natural gas drilling and producing companies in the United States. Its Well Servicing segment provides services performed with a mobile well servicing rig and ancillary equipment, such as maintenance work involving removal, repair, and replacement of down-hole equipment; hoisting tools and equipment required by the operation into and out of the well, or removing equipment from the well bore; and plugging and abandonment services, as well as manufactures and sells workover rigs. As of December 31, 2019, this segment operated a fleet of 306 well servicing rigs. The company's Water Logistics segment provides oilfield fluid supply, transportation, storage, and midstream services, such as the operation of company-owned fresh water and brine source wells and of non-hazardous wastewater disposal wells; sale and transportation of fresh and brine water; transportation of fluids used in drilling, completion, workover, and flowback operations and of saltwater produced as a by-product; rental of portable fracturing tanks and test tanks; recycling and treatment of wastewater, including produced water and flowback; and preparation, construction, and maintenance of access roads, drilling locations, and production facilities. This segment owned and operated 762 fluid service trucks with an average fluid hauling capacity of up to 150 barrels; and owned 87 saltwater disposal wells. Its Completion & Remedial Services segment offers services, including rental and fishing tools; coiled tubing; snubbing services; thru-tubing; and underbalanced drilling in low pressure and fluid sensitive reservoirs. This segment operates 24 air compressor packages, 32 snubbing units, and 9 coiled tubing units. The company was formerly known as Sierra Well Service, Inc. and changed its name to Basic Energy Services, Inc. in 2000. Basic Energy Services, Inc. was founded in 1992 and is headquartered in Fort Worth, Texas.

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