Dril-Quip (NYSE: DRQ) and CIRCOR International (NYSE:CIR) are both small-cap oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, earnings, profitability, analyst recommendations, risk and institutional ownership.

Profitability

This table compares Dril-Quip and CIRCOR International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dril-Quip 4.28% 2.12% 1.99%
CIRCOR International 2.74% 6.55% 3.49%

Analyst Recommendations

This is a summary of recent ratings and price targets for Dril-Quip and CIRCOR International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dril-Quip 0 6 1 0 2.14
CIRCOR International 1 0 4 0 2.60

Dril-Quip currently has a consensus price target of $53.67, indicating a potential upside of 45.44%. CIRCOR International has a consensus price target of $65.00, indicating a potential upside of 36.30%. Given Dril-Quip’s higher possible upside, equities research analysts clearly believe Dril-Quip is more favorable than CIRCOR International.

Valuation & Earnings

This table compares Dril-Quip and CIRCOR International’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Dril-Quip $476.88 million 2.93 $59.69 million $0.54 68.33
CIRCOR International $589.51 million 1.33 $56.70 million $0.98 48.66

Dril-Quip has higher revenue, but lower earnings than CIRCOR International. CIRCOR International is trading at a lower price-to-earnings ratio than Dril-Quip, indicating that it is currently the more affordable of the two stocks.

Dividends

CIRCOR International pays an annual dividend of $0.15 per share and has a dividend yield of 0.3%. Dril-Quip does not pay a dividend. CIRCOR International pays out 15.3% of its earnings in the form of a dividend.

Risk & Volatility

Dril-Quip has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500. Comparatively, CIRCOR International has a beta of 1.66, indicating that its share price is 66% more volatile than the S&P 500.

Summary

CIRCOR International beats Dril-Quip on 8 of the 14 factors compared between the two stocks.

Dril-Quip Company Profile

Dril-Quip, Inc. (Dril-Quip) designs, manufactures, sells and services engineered drilling and production equipment. The Company’s operations are organized into three geographic segments: Western Hemisphere, including North and South America, headquartered in Houston, Texas; Eastern Hemisphere, including Europe and Africa, headquartered in Aberdeen, Scotland, and Asia-Pacific, including the Pacific Rim, Southeast Asia, Australia, India and the Middle East, headquartered in Singapore. Its equipment is suited for use in deepwater, harsh environments and service applications. Its principal products consist of subsea and surface wellheads, subsea and surface production trees, subsea control systems and manifolds, mudline hanger systems, specialty connectors and associated pipe, drilling and production riser systems, liner hangers, wellhead connectors and diverters. The Company has manufacturing facilities in approximately three of its headquarter locations, as well as in Macae, Brazil.

CIRCOR International Company Profile

CIRCOR International, Inc. (CIRCOR) designs, manufactures and markets engineered products and sub-systems for markets, including oil and gas, aerospace, power and process, and industrial solutions. The Company operates through two segments: CIRCOR Energy (Energy segment (Energy)) and CIRCOR Advanced Flow Solutions (Advanced Flow Solutions segment (AFS)). Energy provides engineered integrated flow control solutions, valves and services primarily in the oil and gas end market. AFS is a flow control technology platform. Energy provides its flow control solutions and services through the brands, including Circle Seal Controls, DeltaValve, Contromatics, Dopak Sampling and others. AFS manufactures and markets control valves, automatic recirculation valves, regulators, fluid controls, actuation systems, landing gear components, pneumatic controls, electro-mechanical controls, and other flow control products and systems. As of December 31, 2016, it operated 19 manufacturing facilities.

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