Analyzing Newpark Resources (NYSE:NR) and Solaris Energy Infrastructure (NASDAQ:SEI)

Newpark Resources (NYSE:NR) and Solaris Energy Infrastructure (NASDAQ:SEI) are both oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, profitability, institutional ownership, dividends and valuation.

Risk and Volatility

Newpark Resources has a beta of 2.92, suggesting that its stock price is 192% more volatile than the S&P 500. Comparatively, Solaris Energy Infrastructure has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500.

Insider & Institutional Ownership

80.8% of Newpark Resources shares are held by institutional investors. Comparatively, 67.4% of Solaris Energy Infrastructure shares are held by institutional investors. 4.8% of Newpark Resources shares are held by company insiders. Comparatively, 34.7% of Solaris Energy Infrastructure shares are held by company 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.

Profitability

This table compares Newpark Resources and Solaris Energy Infrastructure’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Newpark Resources	-28.47%	5.93%	4.08%
Solaris Energy Infrastructure	4.80%	6.66%	4.12%

Analyst Ratings

This is a summary of current ratings and recommmendations for Newpark Resources and Solaris Energy Infrastructure, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Newpark Resources	0	0	4	0	3.00
Solaris Energy Infrastructure	0	0	2	0	3.00

Newpark Resources presently has a consensus price target of $11.00, indicating a potential upside of 0.00%. Solaris Energy Infrastructure has a consensus price target of $30.00, indicating a potential downside of 4.41%. Given Newpark Resources’ higher possible upside, equities analysts plainly believe Newpark Resources is more favorable than Solaris Energy Infrastructure.

Earnings & Valuation

This table compares Newpark Resources and Solaris Energy Infrastructure”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Newpark Resources	$748.37 million	0.00	$14.52 million	($1.83)	N/A
Solaris Energy Infrastructure	$292.95 million	7.19	$24.34 million	$0.44	71.33

Solaris Energy Infrastructure has lower revenue, but higher earnings than Newpark Resources. Newpark Resources 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.

Summary

Solaris Energy Infrastructure beats Newpark Resources on 7 of the 12 factors compared between the two stocks.

About Newpark Resources

Newpark Resources, Inc. provides products, rentals, and services primarily to the oil and natural gas exploration and production (E&P) industry. It operates through two segments, Fluids Systems and Industrial Solutions. The Fluids Systems segment provides drilling, completion, and stimulation fluids products and related technical services to customers primarily in the North America, Europe, the Middle East, and Africa, as well as other countries in the Asia Pacific and Latin America. The Industrial Solutions segment offers composite matting system rentals utilized for temporary worksite access; related site construction and services to customers in various markets, including power transmission, E&P, pipeline, renewable energy, petrochemical, construction, and other industries primarily in the United States and Europe; recyclable composite mats to customers worldwide; and access road construction, site planning and preparation, environmental protection, erosion control, and site restoration services. The company was incorporated in 1932 and is headquartered in The Woodlands, Texas.

About Solaris Energy Infrastructure

Solaris Oilfield Infrastructure, Inc. designs and manufactures specialized equipment for oil and natural gas operators in the United States. The company provides mobile proppant and fluid management systems, as well as last mile logistics management services. It offers systems, mobilization, and last mile logistics services that are used to unload, store, and deliver proppant, water and/or chemicals at oil and natural gas well sites. The company is also involved in the transloading and storage of proppant or railcars at its transloading facility. In addition, it develops Railtronix, an inventory management software; and all-electric equipment that automates the low pressure section of oil and gas well completion sites. The company serves exploration and production, and oilfield services industries. Solaris Oilfield Infrastructure, Inc. was founded in 2014 and is headquartered in Houston, Texas.