Forum Energy Technologies (NYSE:FET) & Innovex International (NYSE:INVX) Critical Contrast

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Forum Energy Technologies	$800.61 million	0.31	-$18.88 million	($4.23)	-4.71
Innovex International	$424.06 million	2.71	$600,000.00	$1.41	12.10

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

Insider and Institutional Ownership

65.6% of Forum Energy Technologies shares are held by institutional investors. 6.2% of Forum Energy Technologies shares are held by insiders. Comparatively, 3.1% of Innovex International shares are held by 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 Forum Energy Technologies and Innovex International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Forum Energy Technologies	-6.07%	-2.00%	-0.92%
Innovex International	12.31%	-0.73%	-0.61%

Risk and Volatility

Forum Energy Technologies has a beta of 2.38, meaning that its stock price is 138% more volatile than the S&P 500. Comparatively, Innovex International has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Forum Energy Technologies and Innovex International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Forum Energy Technologies	0	0	0	0	0.00
Innovex International	1	0	0	1	2.50

Innovex International has a consensus price target of $15.00, indicating a potential downside of 12.08%. Given Innovex International’s stronger consensus rating and higher possible upside, analysts plainly believe Innovex International is more favorable than Forum Energy Technologies.

Summary

Innovex International beats Forum Energy Technologies on 10 of the 14 factors compared between the two stocks.

About Forum Energy Technologies

Forum Energy Technologies, Inc. designs, manufactures, and distributes products serving the oil, natural gas, industrial, and renewable energy industries in the United States and internationally. It operates through three segments: Drilling & Downhole, Completions, and Production. The Drilling & Downhole segment designs, manufactures, and supplies products, and provides related services to the drilling, well construction, artificial lift, and subsea energy construction and services markets, including applications in oil and natural gas, renewable energy, defense, and communications. This segment offers drilling technologies consisting of capital equipment and a line of products consumed in the drilling process; well construction casing and cementing equipment, and products for artificial lift equipment and cables; and subsea remotely operated vehicles and trenchers, submarine rescue vehicles, specialty components and tools, and technical services. The Completions segment offers hydraulic fracturing pumps, cooling systems, high-pressure flexible hoses, and flow iron for pressure pumping markets; wireline cable and pressure control equipment for well completion and intervention service markets; and coiled tubing strings and coiled line pipe and related services. The Production segment designs, manufactures, and supplies products, and provides related equipment and services for production and infrastructure markets. This segment offers engineered process systems, production equipment, specialty separation equipment, and various industrial valves for oil and natural gas customers, power generation, renewable energy, and other general industrial applications. The company was formerly known as Forum Oilfield Technologies, Inc. and changed its name to Forum Energy Technologies, Inc. in August 2010. Forum Energy Technologies, Inc. was incorporated in 2005 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.