Innovex International (INVX) versus Its Peers Critical Review

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

Volatility and Risk

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 rivals have a beta of 1.42, meaning that their average share price is 42% more volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Innovex International	$550.34 million	$600,000.00	9.37
Innovex International Competitors	$4.36 billion	-$154.22 million	11.35

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

Insider and Institutional Ownership

73.2% of shares of all “Oil & gas field machinery” companies are held by institutional investors. 3.1% of Innovex International shares are held by company insiders. Comparatively, 11.9% of shares of all “Oil & gas field machinery” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Innovex International and its rivals’ 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%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Innovex International and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innovex International	1	0	0	0	1.00
Innovex International Competitors	190	1393	1679	47	2.48

Innovex International presently has a consensus target price of $15.00, indicating a potential upside of 13.55%. As a group, “Oil & gas field machinery” companies have a potential upside of 31.29%. Given Innovex International’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Innovex International has less favorable growth aspects than its rivals.

Summary

Innovex International rivals 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.