Financial Analysis: Solaris Energy Infrastructure (NASDAQ:SEI) versus Innovex International (NYSE:INVX)

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

Institutional and Insider Ownership

67.4% of Solaris Energy Infrastructure shares are owned by institutional investors. 3.1% of Innovex International shares are owned by company insiders. Comparatively, 34.7% of Solaris Energy Infrastructure shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Innovex International and Solaris Energy Infrastructure’s 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%
Solaris Energy Infrastructure	4.80%	6.66%	4.12%

Earnings and Valuation

This table compares Innovex International and Solaris Energy Infrastructure”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innovex International	$424.06 million	2.11	$600,000.00	$1.41	9.43
Solaris Energy Infrastructure	$292.95 million	5.80	$24.34 million	$0.44	63.71

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Innovex International and Solaris Energy Infrastructure, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innovex International	1	0	0	0	1.00
Solaris Energy Infrastructure	0	0	2	0	3.00

Innovex International presently has a consensus price target of $15.00, suggesting a potential upside of 12.78%. Solaris Energy Infrastructure has a consensus price target of $30.00, suggesting a potential upside of 7.03%. Given Innovex International’s higher probable upside, analysts plainly believe Innovex International is more favorable than Solaris Energy Infrastructure.

Volatility & Risk

Innovex International has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500. Comparatively, Solaris Energy Infrastructure has a beta of 1.45, meaning that its stock price is 45% more volatile than the S&P 500.

Summary

Solaris Energy Infrastructure beats Innovex International on 10 of the 14 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 Solaris Energy Infrastructure

Solaris Oilfield Infrastructure, Inc. designs and manufactures specialized equipment for oil and natural gas operators in the United States. The company provides mobile proppant and fluid management systems, as well as last mile logistics management services. It offers systems, mobilization, and last mile logistics services that are used to unload, store, and deliver proppant, water and/or chemicals at oil and natural gas well sites. The company is also involved in the transloading and storage of proppant or railcars at its transloading facility. In addition, it develops Railtronix, an inventory management software; and all-electric equipment that automates the low pressure section of oil and gas well completion sites. The company serves exploration and production, and oilfield services industries. Solaris Oilfield Infrastructure, Inc. was founded in 2014 and is headquartered in Houston, Texas.