Financial Analysis: Innovex International (NYSE:INVX) and Newpark Resources (NYSE:NR)

Innovex International (NYSE:INVX) and Newpark Resources (NYSE:NR) are both small-cap oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.

Valuation and Earnings

This table compares Innovex International and Newpark Resources”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innovex International	$550.34 million	1.82	$600,000.00	$1.41	10.55
Newpark Resources	$748.37 million	0.00	$14.52 million	($1.83)	N/A

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

Profitability

This table compares Innovex International and Newpark Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Innovex International	12.31%	-0.73%	-0.61%
Newpark Resources	-28.47%	5.93%	4.08%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Innovex International and Newpark Resources, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innovex International	1	0	0	0	1.00
Newpark Resources	0	0	4	0	3.00

Innovex International currently has a consensus price target of $15.00, suggesting a potential upside of 0.81%. Newpark Resources has a consensus price target of $11.00, suggesting a potential upside of 0.00%. Given Innovex International’s higher probable upside, equities research analysts clearly believe Innovex International is more favorable than Newpark Resources.

Risk and Volatility

Innovex International has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500. Comparatively, Newpark Resources has a beta of 2.92, meaning that its share price is 192% more volatile than the S&P 500.

Institutional & Insider Ownership

80.8% of Newpark Resources shares are held by institutional investors. 3.1% of Innovex International shares are held by insiders. Comparatively, 4.8% of Newpark Resources shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Newpark Resources beats Innovex International on 10 of the 13 factors compared between the two stocks.

About Innovex International

Innovex Downhole Solutions Inc. designs, manufactures and installs mission-critical drilling & deployment, well construction, completion, production and fishing & intervention solutions to support upstream onshore and offshore activities. Innovex Downhole Solutions Inc., formerly known as Dril-Quip, is based in HOUSTON.

About Newpark Resources

Newpark Resources, Inc. provides products, rentals, and services primarily to the oil and natural gas exploration and production (E&P) industry. It operates through two segments, Fluids Systems and Industrial Solutions. The Fluids Systems segment provides drilling, completion, and stimulation fluids products and related technical services to customers primarily in the North America, Europe, the Middle East, and Africa, as well as other countries in the Asia Pacific and Latin America. The Industrial Solutions segment offers composite matting system rentals utilized for temporary worksite access; related site construction and services to customers in various markets, including power transmission, E&P, pipeline, renewable energy, petrochemical, construction, and other industries primarily in the United States and Europe; recyclable composite mats to customers worldwide; and access road construction, site planning and preparation, environmental protection, erosion control, and site restoration services. The company was incorporated in 1932 and is headquartered in The Woodlands, Texas.