DNOW (NYSE:DNOW) & Innovex International (NYSE:INVX) Financial Survey

DNOW (NYSE:DNOW) and Innovex International (NYSE:INVX) are both small-cap industrial products companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, institutional ownership, risk, dividends, earnings and profitability.

Volatility & Risk

DNOW has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500. Comparatively, Innovex International has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500.

Insider and Institutional Ownership

97.6% of DNOW shares are owned by institutional investors. 2.6% of DNOW shares are owned by insiders. Comparatively, 3.1% of Innovex International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for DNOW and Innovex International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DNOW	0	1	1	0	2.50
Innovex International	1	0	0	1	2.50

DNOW presently has a consensus target price of $17.00, indicating a potential downside of 0.98%. Innovex International has a consensus target price of $15.00, indicating a potential downside of 8.93%. Given DNOW’s higher probable upside, analysts plainly believe DNOW is more favorable than Innovex International.

Profitability

This table compares DNOW and Innovex International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DNOW	8.70%	8.90%	6.19%
Innovex International	12.31%	-0.73%	-0.61%

Earnings and Valuation

This table compares DNOW and Innovex International”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DNOW	$2.32 billion	0.78	$247.00 million	$1.87	9.18
Innovex International	$424.06 million	2.61	$600,000.00	$1.41	11.68

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

Summary

DNOW beats Innovex International on 9 of the 14 factors compared between the two stocks.

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.

About Innovex International

Innovex International, Inc. engages in the provision of solutions for both onshore and offshore applications within the oil and gas industry. The company was founded on September 15, 2016 and is headquartered in Humble, TX.