Critical Analysis: Oceaneering International (NYSE:OII) & Exterran (EXTN)

Exterran (NYSE: EXTN) and Oceaneering International (NYSE:OII) are both small-cap energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, risk, profitability and dividends.

Insider and Institutional Ownership

90.7% of Exterran shares are held by institutional investors. Comparatively, 99.4% of Oceaneering International shares are held by institutional investors. 2.2% of Exterran shares are held by company insiders. Comparatively, 0.9% of Oceaneering International shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Exterran and Oceaneering International’s top-line revenue, earnings per share and valuation.

Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
Exterran$1.22 billion0.84$33.88 million($0.32)-88.91
Oceaneering International$1.92 billion0.98$166.39 million$3.545.43

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

Dividends

Oceaneering International pays an annual dividend of $0.30 per share and has a dividend yield of 1.6%. Exterran does not pay a dividend. ....

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