Head to Head Comparison: Drilling Tools International (NASDAQ:DTI) vs. NCS Multistage (NASDAQ:NCSM)
by Jessica Moore · The Cerbat GemNCS Multistage (NASDAQ:NCSM – Get Free Report) and Drilling Tools International (NASDAQ:DTI – Get Free Report) are both small-cap energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.
Analyst Recommendations
This is a summary of current ratings and price targets for NCS Multistage and Drilling Tools International, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NCS Multistage | 0 | 2 | 0 | 1 | 2.67 |
| Drilling Tools International | 1 | 0 | 0 | 1 | 2.50 |
Profitability
This table compares NCS Multistage and Drilling Tools International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NCS Multistage | 6.89% | 12.10% | 9.40% |
| Drilling Tools International | -3.93% | 1.12% | 0.60% |
Valuation & Earnings
This table compares NCS Multistage and Drilling Tools International”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NCS Multistage | $162.56 million | 0.62 | $6.59 million | $4.54 | 8.70 |
| Drilling Tools International | $154.45 million | 0.56 | $3.01 million | ($0.19) | -12.89 |
NCS Multistage has higher revenue and earnings than Drilling Tools International. Drilling Tools International is trading at a lower price-to-earnings ratio than NCS Multistage, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
70.9% of NCS Multistage shares are owned by institutional investors. Comparatively, 2.8% of Drilling Tools International shares are owned by institutional investors. 10.0% of NCS Multistage shares are owned by company insiders. Comparatively, 56.5% of Drilling Tools International shares are owned by company 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.
Risk & Volatility
NCS Multistage has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500. Comparatively, Drilling Tools International has a beta of -0.38, indicating that its stock price is 138% less volatile than the S&P 500.
Summary
NCS Multistage beats Drilling Tools International on 11 of the 12 factors compared between the two stocks.
About NCS Multistage
NCS Multistage Holdings, Inc. provides engineered products and support services for oil and natural gas well completions and construction, and field development strategies in the United States, Canada, and internationally. It offers fracturing systems, which include casing-installed sliding sleeves, downhole frac isolation assemblies, and sand jet perforating products; enhanced recovery products, such as sliding sleeve, as well as Terrus system, an injection control device; repeat precision products comprising composite frac plugs and bridge plugs, single-use disposable setting tools, express systems, and related products; chemical and radioactive tracer diagnostics services; and well construction products, including AirLock casing buoyancy system, Vecturon and Vectraset liner hanger systems, and Toe initiation sleeves. It offers its products and services primarily to exploration and production companies for use in onshore wells through technically-trained sales force, and operating partners or sales representatives. The company was formerly known as Pioneer Super Holdings, Inc. and changed its name to NCS Multistage Holdings, Inc. in December 2016. NCS Multistage Holdings, Inc. was founded in 2006 and is headquartered in Houston, Texas.
About Drilling Tools International
Drilling Tools International Corporation provides oilfield equipment and services to oil and natural gas sectors in North America, Europe, and the Middle East. It offers downhole tool rentals, machining, and inspection services to support the global drilling and wellbore construction industry. The company also provides products are bottom hole assembly components, such as stabilizers, subs, non-magnetic and steel drill collars, hole openers, and roller reamers, as well as drill pipe and drill pipe accessories; ancillary equipment and handling tools to support its rental platform, including float valves, ring gauges, tool baskets, lift bail, lift subs, mud magnets, elevators, bracket and bail assemblies, slips, tongs, stabbing guides and safety clamps; and blowout preventers, and pressure control accessory equipment. In addition, it offers tool rental services, which consists of rental, inspection, machining, and repair services; rents downhole drilling tools used in horizontal and directional drilling of oil and natural gas; rents kellys, pip joints, work strings; maintains a fleet of rental equipment consisting of drill collars, stabilizers, crossover subs, wellbore conditioning tools, drill pipe, hevi-wate drill pipe, and tubing; rents surface control equipment, such as blowout preventers and handling tools; and provides downhole products for producing wells. Drilling Tools International Corporation is headquartered in Houston, Texas.