Dril-Quip (NYSE:DRQ – Get Free Report) and Drilling Tools International (NASDAQ:DTI – Get Free Report) are both small-cap oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, profitability, dividends and risk.
Volatility and Risk
Dril-Quip has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500. Comparatively, Drilling Tools International has a beta of -0.9, meaning that its stock price is 190% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings for Dril-Quip and Drilling Tools International, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Dril-Quip | 1 | 0 | 1 | 0 | 2.00 |
| Drilling Tools International | 0 | 1 | 0 | 0 | 2.00 |
Profitability
This table compares Dril-Quip and Drilling Tools International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Dril-Quip | -4.89% | -2.98% | -2.58% |
| Drilling Tools International | 8.21% | 14.88% | 9.04% |
Insider & Institutional Ownership
2.8% of Drilling Tools International shares are owned by institutional investors. 1.7% of Dril-Quip shares are owned by insiders. Comparatively, 14.7% of Drilling Tools International shares are owned by 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.
Valuation and Earnings
This table compares Dril-Quip 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 | |
| Dril-Quip | $424.06 million | 1.44 | $600,000.00 | ($0.64) | -27.67 |
| Drilling Tools International | $152.03 million | 1.07 | $14.75 million | $0.43 | 12.65 |
Drilling Tools International has lower revenue, but higher earnings than Dril-Quip. Dril-Quip is trading at a lower price-to-earnings ratio than Drilling Tools International, indicating that it is currently the more affordable of the two stocks.
Summary
Drilling Tools International beats Dril-Quip on 7 of the 12 factors compared between the two stocks.
About Dril-Quip
Dril-Quip, Inc., together with its subsidiaries, designs, manufactures, sells, and services engineered drilling and production equipment for offshore and onshore applications worldwide. The company's principal products include subsea and surface wellheads, specialty connectors and associated pipes, subsea production trees and systems, mudline hanger systems, production riser systems, dry tree systems, subsea manifolds, line hangers and expandable liner systems, multi-frac well connections, conventional wellheads, thermal wellheads, completion packers, and safety and kelly valves; and rig equipment comprises drilling riser systems, wellhead connectors, diverters, and cement manifolds. It also provides technical advisory assistance, and rework and reconditioning services, as well as rental and purchase of running tools for use in the installation and retrieval of its products; equipment installation and monitoring, storage, maintenance, and repair services; and downhole tools comprise of liner hangers, production packers, safety valves, and specialty downhole tools that are used to hang-off and seal casing into a previously installed casing string in the well bore. The company's products are used in the exploration and production of oil and gas from offshore drilling rigs, such as floating rigs and jack-up rigs; and for drilling and production of oil and gas wells on offshore platforms, tension leg platforms, Spars, and moored vessels, such as floating production, storage, and offloading monohull moored vessels. It sells its products directly through its sales personnel, independent sales agents, and representatives to integrated, independent, and foreign national oil and gas companies, as well as drilling and other oilfield contractors, and engineering and construction companies. Dril-Quip, Inc. was founded in 1981 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.
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