Subsea 7 (OTC:SUBCY) & Select Water Solutions (NYSE:WTTR) Critical Contrast

Subsea 7 (OTC:SUBCY) and Select Water Solutions (NYSE:WTTR) are both oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, earnings, analyst recommendations, institutional ownership and profitability.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Subsea 7 and Select Water Solutions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Subsea 7	0	1	0	0	2.00
Select Water Solutions	0	0	2	1	3.33

Select Water Solutions has a consensus price target of $16.25, suggesting a potential upside of 32.38%. Given Select Water Solutions’ stronger consensus rating and higher probable upside, analysts clearly believe Select Water Solutions is more favorable than Subsea 7.

Profitability

This table compares Subsea 7 and Select Water Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Subsea 7	2.46%	3.72%	1.98%
Select Water Solutions	2.11%	3.48%	2.37%

Earnings and Valuation

This table compares Subsea 7 and Select Water Solutions”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Subsea 7	$5.97 billion	0.82	$15.40 million	$0.54	29.91
Select Water Solutions	$1.45 billion	1.01	$74.40 million	$0.30	40.92

Select Water Solutions has lower revenue, but higher earnings than Subsea 7. Subsea 7 is trading at a lower price-to-earnings ratio than Select Water Solutions, indicating that it is currently the more affordable of the two stocks.

Dividends

Subsea 7 pays an annual dividend of $0.54 per share and has a dividend yield of 3.3%. Select Water Solutions pays an annual dividend of $0.28 per share and has a dividend yield of 2.3%. Subsea 7 pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Select Water Solutions pays out 93.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility and Risk

Subsea 7 has a beta of 1.71, meaning that its stock price is 71% more volatile than the S&P 500. Comparatively, Select Water Solutions has a beta of 1.73, meaning that its stock price is 73% more volatile than the S&P 500.

Insider and Institutional Ownership

0.0% of Subsea 7 shares are owned by institutional investors. Comparatively, 81.7% of Select Water Solutions shares are owned by institutional investors. 1.0% of Subsea 7 shares are owned by insiders. Comparatively, 8.4% of Select Water Solutions shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Select Water Solutions beats Subsea 7 on 12 of the 17 factors compared between the two stocks.

About Subsea 7

Subsea 7 S.A. delivers offshore projects and services for the energy industry worldwide. It provides subsea field development products and services, including project management, design and engineering, procurement, fabrication, survey, installation, and commissioning of production facilities on the seabed and the tie-back of its facilities to fixed or floating platforms or to the shore. The company also offers engineering, procurement, commissioning, and installation of subsea umbilicals, risers, and flowlines; inspection, repair, maintenance, remote intervention, and integrity management of subsea infrastructure services; conventional services comprising fabrication, installation, extension, and refurbishment of fixed and floating platforms and associated pipelines in shallow water; and hook-up services. In addition, it operates heavy lifting operations and heavy transportation services for renewables structures; and installs offshore wind turbine foundations, as well as engages in the decommissioning of redundant offshore structures. Further, the company provides remotely operated vehicles (ROVs) and tooling services to support exploration and production activities, as well as engineering and advisory services for customers in the oil and gas, renewables, and utilities industries. The company was incorporated in 1993 and is based in Luxembourg, Luxembourg.

About Select Water Solutions

Select Water Solutions, Inc., together with its subsidiaries, provides water management and chemical solutions to the energy industry in the United States. The company operates through three segments: Water Services, Water Infrastructure, and Chemical Technologies. The Water Services segment provides water-related services, including water sourcing, water transfer, flowback and well testing, water containment, fluids hauling, water monitoring, and water network automation; technology solutions comprising hydrographic mapping, water volume and quality monitoring, remote pit and tank monitoring, leak detection, asset and fuel tracking, and automated-equipment services, as well as various surface rental equipment and workforce accommodation services. The Water Infrastructure segment engages in the recycling, gathering, transferring, and disposal of water through a network of permanent pipeline infrastructure, semi-permanent pipeline infrastructure, water recycling facilities, earthen pits, water sources, and SWDs; provides solids management services; and develops, builds, and operates semi-permanent and permanent infrastructure solutions. The Chemical Technologies segment provides technical solutions, products, and services related to chemical applications in the oil and gas industry. This segment develops, manufactures, and manages logistics; and provides chemicals used in hydraulic fracturing, stimulation, cementing, and well completions for pressure pumpers and oil and gas producers, as well as offers production chemical solutions for underperforming wells, corrosion and scale monitoring, chemical inventory management, well failure analysis, and lab services. It primarily serves oil and gas producers. The company was formerly known as Select Energy Services, Inc. and changed its name to Select Water Solutions, Inc. in May 2023. Select Water Solutions, Inc. was incorporated in 2016 and is headquartered in Houston, Texas.