Critical Analysis: Solaris Energy Infrastructure (SEI) and The Competition

Solaris Energy Infrastructure (NASDAQ:SEI) is one of 25 public companies in the “Oil & gas field machinery” industry, but how does it weigh in compared to its rivals? We will compare Solaris Energy Infrastructure to related companies based on the strength of its profitability, valuation, earnings, analyst recommendations, dividends, risk and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings for Solaris Energy Infrastructure and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solaris Energy Infrastructure	0	0	2	0	3.00
Solaris Energy Infrastructure Competitors	192	1395	1688	47	2.48

Solaris Energy Infrastructure currently has a consensus target price of $30.00, indicating a potential upside of 7.30%. As a group, “Oil & gas field machinery” companies have a potential upside of 32.65%. Given Solaris Energy Infrastructure’s rivals higher probable upside, analysts plainly believe Solaris Energy Infrastructure has less favorable growth aspects than its rivals.

Dividends

Solaris Energy Infrastructure pays an annual dividend of $0.48 per share and has a dividend yield of 1.7%. Solaris Energy Infrastructure pays out 109.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Oil & gas field machinery” companies pay a dividend yield of 1.5% and pay out 23.2% of their earnings in the form of a dividend.

Risk & Volatility

Solaris Energy Infrastructure has a beta of 1.45, meaning that its stock price is 45% more volatile than the S&P 500. Comparatively, Solaris Energy Infrastructure’s rivals have a beta of 1.42, meaning that their average stock price is 42% more volatile than the S&P 500.

Insider & Institutional Ownership

67.4% of Solaris Energy Infrastructure shares are held by institutional investors. Comparatively, 73.2% of shares of all “Oil & gas field machinery” companies are held by institutional investors. 34.7% of Solaris Energy Infrastructure shares are held by company insiders. Comparatively, 11.9% of shares of all “Oil & gas field machinery” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Solaris Energy Infrastructure and its rivals’ 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%
Solaris Energy Infrastructure Competitors	2.62%	7.27%	4.56%

Valuation and Earnings

This table compares Solaris Energy Infrastructure and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Solaris Energy Infrastructure	$280.14 million	$24.34 million	63.55
Solaris Energy Infrastructure Competitors	$4.39 billion	-$154.22 million	12.47

Solaris Energy Infrastructure’s rivals have higher revenue, but lower earnings than Solaris Energy Infrastructure. Solaris Energy Infrastructure is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Solaris Energy Infrastructure beats its rivals on 8 of the 15 factors compared.

Solaris Energy Infrastructure Company Profile

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.