Solaris Energy Infrastructure (NASDAQ:SEI – Get Free Report) and DNOW (NYSE:DNOW – Get Free Report) are both small-cap oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability.
Volatility and Risk
Solaris Energy Infrastructure has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500. Comparatively, DNOW has a beta of 1.53, meaning that its share price is 53% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings for Solaris Energy Infrastructure and DNOW, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Solaris Energy Infrastructure | 0 | 0 | 3 | 1 | 3.25 |
| DNOW | 0 | 1 | 1 | 0 | 2.50 |
Valuation & Earnings
This table compares Solaris Energy Infrastructure and DNOW”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Solaris Energy Infrastructure | $292.95 million | 6.31 | $24.34 million | $0.44 | 62.60 |
| DNOW | $2.32 billion | 0.64 | $247.00 million | $1.87 | 7.51 |
DNOW has higher revenue and earnings than Solaris Energy Infrastructure. DNOW 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.
Insider and Institutional Ownership
67.4% of Solaris Energy Infrastructure shares are owned by institutional investors. Comparatively, 97.6% of DNOW shares are owned by institutional investors. 34.7% of Solaris Energy Infrastructure shares are owned by company insiders. Comparatively, 2.6% of DNOW shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares Solaris Energy Infrastructure and DNOW’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Solaris Energy Infrastructure | 4.80% | 6.66% | 4.12% |
| DNOW | 8.70% | 8.90% | 6.19% |
Summary
DNOW beats Solaris Energy Infrastructure on 8 of the 15 factors compared between the two stocks.
About Solaris Energy Infrastructure
Solaris Energy Infrastructure, Inc. is a holding company, which engages in the manufacture of patented mobile proppant management systems that unload, store, and deliver proppant to oil and natural gas well sites. Its products include Mobile Proppant and Mobile Chemical Management Systems, and Inventory Management Software. The firm’s services include field, last mile management, and transloading services. The company was founded by William A. Zartler in 2014 and is headquartered in Houston, TX.
About DNOW
DNOW Inc. distributes downstream energy and industrial products for petroleum refining, chemical processing, LNG terminals, power generation utilities, and customer on-site locations in the United States, Canada, and internationally. The company provides consumable maintenance, repair, and operating supplies; pipes, manual and automated valves, fittings, flanges, gaskets, fasteners, electrical instrumentations, artificial lift, pumping solutions, valve actuation and modular process, and measurement and control equipment; and mill supplies, tools, safety supplies, and personal protective equipment, as well as artificial lift systems, coatings, and miscellaneous expendable items. It also offers original equipment manufacturer equipment, including pumps, generator sets, air compressors, dryers, blowers, mixers, and valves; modular oil and gas tank battery solutions; and application systems, work processes, parts integration, optimization solutions, and after-sales support services. In addition, the company provides supply chain and materials management; inventory planning and management, procurement, and warehouse management, as well as solutions for logistics, point of issue technology, project management, business process, and performance metrics reporting services. It serves customers in the upstream, midstream, and downstream sectors of the energy industry, including drilling contractors, well-servicing companies, independent and national oil and gas companies, midstream operators, and refineries, as well as petrochemical, chemical, utilities, RNG facilities, and other downstream energy processors; and industrial and manufacturing companies. The company was formerly known as NOW Inc. and changed its name to DNOW Inc. in January 2024. DNOW Inc. was founded in 1862 and is headquartered in Houston, Texas.
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