Analyzing Solaris Energy Infrastructure (NASDAQ:SEI) & Innovex International (NYSE:INVX)

Solaris Energy Infrastructure (NASDAQ:SEI) and Innovex International (NYSE:INVX) are both small-cap oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Institutional and Insider Ownership

67.4% of Solaris Energy Infrastructure shares are owned by institutional investors. 34.7% of Solaris Energy Infrastructure shares are owned by insiders. Comparatively, 3.1% of Innovex International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Solaris Energy Infrastructure	4.80%	6.66%	4.12%
Innovex International	12.31%	-0.73%	-0.61%

Valuation & Earnings

This table compares Solaris Energy Infrastructure and Innovex International”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Solaris Energy Infrastructure	$292.95 million	5.80	$24.34 million	$0.44	63.71
Innovex International	$424.06 million	2.11	$600,000.00	$1.41	9.43

Solaris Energy Infrastructure has higher earnings, but lower revenue than Innovex International. Innovex International 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.

Analyst Ratings

This is a breakdown of current ratings and target prices for Solaris Energy Infrastructure and Innovex International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solaris Energy Infrastructure	0	0	2	0	3.00
Innovex International	1	0	0	0	1.00

Solaris Energy Infrastructure currently has a consensus target price of $30.00, indicating a potential upside of 7.03%. Innovex International has a consensus target price of $15.00, indicating a potential upside of 12.78%. Given Innovex International’s higher probable upside, analysts clearly believe Innovex International is more favorable than Solaris Energy Infrastructure.

Volatility and Risk

Solaris Energy Infrastructure has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500. Comparatively, Innovex International has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500.

Summary

Solaris Energy Infrastructure beats Innovex International on 10 of the 14 factors compared between the two stocks.

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.

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.