Critical Analysis: Innovex International (INVX) versus Its Rivals

Innovex International (NYSE:INVX) is one of 25 public companies in the “Oil & gas field machinery” industry, but how does it compare to its competitors? We will compare Innovex International to similar companies based on the strength of its earnings, valuation, dividends, risk, institutional ownership, analyst recommendations and profitability.

Risk & Volatility

Innovex International has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500. Comparatively, Innovex International’s competitors have a beta of 1.42, meaning that their average share price is 42% more volatile than the S&P 500.

Earnings & Valuation

This table compares Innovex International and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Innovex International	$550.34 million	$600,000.00	9.62
Innovex International Competitors	$4.39 billion	-$154.22 million	12.17

Innovex International’s competitors have higher revenue, but lower earnings than Innovex International. Innovex International is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of current recommendations for Innovex International and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innovex International	1	0	0	0	1.00
Innovex International Competitors	192	1396	1690	47	2.48

Innovex International currently has a consensus price target of $15.00, indicating a potential upside of 10.62%. As a group, “Oil & gas field machinery” companies have a potential upside of 29.73%. Given Innovex International’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Innovex International has less favorable growth aspects than its competitors.

Profitability

This table compares Innovex International and its competitors’ 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%
Innovex International Competitors	2.62%	7.27%	4.56%

Insider & Institutional Ownership

73.2% of shares of all “Oil & gas field machinery” companies are owned by institutional investors. 3.1% of Innovex International shares are owned by company insiders. Comparatively, 11.9% of shares of all “Oil & gas field machinery” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Innovex International competitors beat Innovex International on 11 of the 13 factors compared.

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.