Helix Energy Solutions Group contributions, Inc. (NYSE: HLX) was higher than 5.04% this year and recently increased by 1.93% or $ 0.15 to settle at $ 7.92. ProPetro Holding Corp. (NYSE: PUMP), on the other hand, is lower – 2.73% of years to date on 11/19/2018. Currently trading at $ 19.61 and has returned 12.31% in the last week.
Helix Energy Solutions Group, Inc. (NYSE: HLX) to ProPetro Holding Corp. (NYSE: PUMP) is the two most active stock based on recent trading volumes. The interest of investors in both stocks is obviously very high, but that is the better investment? To answer this question, we will compare both companies across growth metrics, profitability, risk and pricing, and also explore their analytical scales and internal activity trends.
Companies who are able to increase earnings consistently at a high composite rate usually have the greatest potential to create value for shareholders in the long term. Comparedly, PUMP is expected to grow at an annual rate of 69.80%. Each one would be equal, the higher PUMP growth rate suggests more potential for capital appreciation.
Profitability and Returns
Growth is not very attractive to investors if companies sacrifice profitability and shareholder forms to achieve that growth. We will use the edge of EBITDA and Return on Investment (ROI), which controls differences in the capital structure between the two companies, to measure profitability and return. Helix Energy Solutions Group, Inc. (HLX) edge of EBITDA of 20.85%. This suggests that the basic HLX business is more profitable HLX's ROI at -0.10% while PUMP ROI has a 3.70%. The interpretation is that the PUMP business creates higher earnings on investment than HLXs.
Stock value is only the current value of free cash flows in the future. HLX ("FCF") free cash flow per share for the twelve months was +0.34. Comparedly, PUMP free cash flow per share was +0.77. On the basis of a percent of sales, HLX free cash flow was 0.01% while PUMP had converted 0.01% of revenue into cash flows. This means, for a specific level of sale, that HLX can generate more free cash flows to investors.
Liquidity and Financial Risk
Liquidity and pulse ratios are important because they disclose a company's financial health. HLX has a current ratio of 2.70 compared to 1.20 for PUMP. This means that HLX can be easier to cover its most direct obligations over the next twelve months. HLX debt-to-equity ratio is 0.27 against E / E of 0.17 for PUMP. Therefore, HLX is more solvent of both companies, and has a lower financial risk.
HLX at the front P / E of 22.82, P / B or 0.71, and P / S or 1.58, or compared to P / E onwards 9.17, P / B or 3.04, to P / S or 1.03 for PUMP . HLX is cheaper for both stocks based on book value but it is expensive in terms of the P / E and P / S. ratio. Given that earnings are the most important for investors, analysts tend to give more of pressure on the P / E.
Targets and Price Opinions Analysts
Cheap stock is not a good investment if the stock is pricing correctly. In order to have a sense of "value" we have to compare the current price to some degree of inherent value such as a price target. HLX is currently priced at -32.94% to a one year price target of 11.81. Comparatively, PUMP is -17.12% compared to a price target of 23.66. This suggests that HLX is the better investment over the next year.
Internal Activity and Investor War
The analysis of internal buying and sales trends can be extended to the whole-level. There is a short interest, which represents the percentage of stock market shareholdings that are currently short, collecting what the market as a whole feels for stock. HLX has a short ratio of 5.89 compared to a short interest of 8.98 for PUMP. This suggests that the market is currently less bearish on the HLX prospects.
ProPetro Holding Corp. Products (NYSE: PUMP) Helix Energy Solutions Group, Inc. (NYSE: HLX) on a total of 7 factor factors compared to the two stocks. PUMP is more profitable, generates a higher return on investment, has a higher cash flow per share and has a lower financial risk. In terms of the valuation, PUMP is cheaper than both stock based on earnings and sales. Finally, EEQ has better signs of interest based on short interest.