Cypress Energy Partners (CELP) and NCS Multistage (NCSM) Financial Analysis

Cypress Energy Partners (NYSE: CELP) and NCS Multistage (NASDAQ:NCSM) are both small-cap oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, valuation, risk, analyst recommendations and dividends.

Dividends

Get Cypress Energy Partners alerts:

Cypress Energy Partners pays an annual dividend of $0.84 per share and has a dividend yield of 11.7%. NCS Multistage does not pay a dividend. Cypress Energy Partners pays out 168.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility and Risk

Cypress Energy Partners has a beta of 1.59, suggesting that its share price is 59% more volatile than the S&P 500. Comparatively, NCS Multistage has a beta of 0.47, suggesting that its share price is 53% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Cypress Energy Partners and NCS Multistage, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cypress Energy Partners	0	2	0	0	2.00
NCS Multistage	0	1	6	1	3.00

Cypress Energy Partners currently has a consensus target price of $7.00, suggesting a potential downside of 2.10%. NCS Multistage has a consensus target price of $24.57, suggesting a potential upside of 72.19%. Given NCS Multistage’s stronger consensus rating and higher probable upside, analysts plainly believe NCS Multistage is more favorable than Cypress Energy Partners.

Institutional & Insider Ownership

1.0% of Cypress Energy Partners shares are held by institutional investors. Comparatively, 94.1% of NCS Multistage shares are held by institutional investors. 11.7% of NCS Multistage shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Cypress Energy Partners and NCS Multistage’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cypress Energy Partners	$286.34 million	0.30	-$810,000.00	$0.50	14.30
NCS Multistage	$201.63 million	3.18	$2.10 million	$0.20	71.35

NCS Multistage has lower revenue, but higher earnings than Cypress Energy Partners. Cypress Energy Partners is trading at a lower price-to-earnings ratio than NCS Multistage, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Cypress Energy Partners and NCS Multistage’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cypress Energy Partners	2.37%	71.49%	4.18%
NCS Multistage	3.06%	2.90%	2.36%

Summary

NCS Multistage beats Cypress Energy Partners on 11 of the 17 factors compared between the two stocks.

About Cypress Energy Partners

Cypress Energy Partners, L.P. provides pipeline inspection and integrity, and environmental services in North America. It operates in three segments: Pipeline Inspection Services (PIS), Integrity Services (IS), and Water and Environmental Services (W&ES). The PIS segment offers independent inspection services for various facilities and equipment, such as transmission pipelines, oil and natural gas gathering systems, pump and compressor stations, storage facilities and terminals, and gas distribution systems. It offers project coordination, staking, pig tracking, maintenance and construction inspection, ultrasonic nondestructive examination, and related data management services. The IS segment provides hydrostatic testing and related services, including filling, pressure testing, and dewatering to natural gas, petroleum, and pipeline construction companies. It performs various integrity services on newly constructed and existing oil and natural gas pipelines. The W&ES segment provides saltwater disposal (SWD) services; and owns and operates eight commercial SWD facilities in the Bakken Shale region of the Williston Basin in North Dakota, as well as one SWD facilities in the Permian Basin in Texas. This segment also provides flowback water management services by disposing flowback water produced from hydraulic fracturing operations during the completion of oil and natural gas wells; offers water management services by disposing naturally occurring water that is extracted during the oil and natural gas production process; separates residual oil from the saltwater stream and sells it to third-parties; and manages existing SWD facilities. It serves oil and natural gas producers, pipeline owners and operators, public utility or local distribution companies, trucking companies, and third-party purchasers of residual oil. The company was founded in 2012 and is headquartered in Tulsa, Oklahoma. Cypress Energy Partners, L.P. is a subsidiary of Cypress Energy Holdings, LLC.

About NCS Multistage

NCS Multistage Holdings, Inc. provides engineered products and support services for oil and natural gas well completions and field development strategies in the United States and internationally. The company's products include casing-installed sliding sleeves, downhole frac isolation assemblies, sand jet perforating products, spotfrac systems, ballshift sliding sleeves, airlock casing buoyancy systems, liner hanger systems, and spectrum tracer services. It also provides advisory services to customers on completion designs and field development strategies. NCS Multistage Holdings, Inc. offers its products and services primarily to exploration and production companies for use in onshore wells through technically-trained direct sales force, and operating partners or sales representatives. The company was formerly known as Pioneer Super Holdings, Inc. and changed its name to NCS Multistage Holdings, Inc. in December 2016. NCS Multistage Holdings, Inc. was founded in 2006 and is headquartered in Houston, Texas.