Innovex International (INVX) vs. Its Peers Financial Analysis

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

Analyst Ratings

This is a breakdown of current ratings for Innovex International and its peers, as provided 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	1678	47	2.48

Innovex International currently has a consensus price target of $15.00, indicating a potential upside of 12.78%. As a group, “Oil & gas field machinery” companies have a potential upside of 27.17%. Given Innovex International’s peers stronger consensus rating and higher probable upside, analysts clearly believe Innovex International has less favorable growth aspects than its peers.

Institutional and Insider 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 insiders. Comparatively, 11.9% of shares of all “Oil & gas field machinery” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Innovex International has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500. Comparatively, Innovex International’s peers have a beta of 1.42, meaning that their average stock price is 42% more volatile than the S&P 500.

Profitability

This table compares Innovex International and its peers’ 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%

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Innovex International	$424.06 million	$600,000.00	9.43
Innovex International Competitors	$4.27 billion	-$154.22 million	13.05

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

Summary

Innovex International peers beat Innovex International on 11 of the 13 factors compared.

Innovex International Company Profile

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.