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

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

Institutional and Insider Ownership

65.6% of Forum Energy Technologies shares are held by institutional investors. 3.1% of Innovex International shares are held by company insiders. Comparatively, 6.2% of Forum Energy Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Innovex International and Forum Energy Technologies’ 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%
Forum Energy Technologies	-16.57%	-2.39%	-1.07%

Volatility & Risk

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innovex International	$424.06 million	2.64	$600,000.00	$1.41	11.82
Forum Energy Technologies	$800.61 million	0.28	-$18.88 million	($10.98)	-1.66

Innovex International has higher earnings, but lower revenue 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.

Analyst Recommendations

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

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

Innovex International currently has a consensus price target of $15.00, suggesting a potential downside of 10.02%. Given Innovex International’s stronger consensus rating and higher possible upside, research 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 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.

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.