McDermott International (OTCMKTS:MDRIQ – Get Rating) and Ares Acquisition (NYSE:AAC – Get Rating) are both small-cap oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, analyst recommendations, profitability, institutional ownership and earnings.
Institutional & Insider Ownership
1.0% of McDermott International shares are held by institutional investors. Comparatively, 73.4% of Ares Acquisition shares are held by institutional investors. 1.0% of McDermott International shares are held by company insiders. Comparatively, 20.0% of Ares Acquisition shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This table compares McDermott International and Ares Acquisition’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
This is a breakdown of current recommendations and price targets for McDermott International and Ares Acquisition, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Valuation and Earnings
This table compares McDermott International and Ares Acquisition’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|McDermott International||$8.43 billion||0.00||-$2.91 billion||($5.95)||-0.01|
|Ares Acquisition||N/A||N/A||$20.98 million||N/A||N/A|
Ares Acquisition has lower revenue, but higher earnings than McDermott International.
Ares Acquisition beats McDermott International on 5 of the 8 factors compared between the two stocks.
About McDermott International
McDermott International, Inc. provides engineering, procurement, construction and installation, and technology solutions to the energy industry worldwide. It operates through five segments: North, Central and South America; Europe, Africa, Russia and Caspian; the Middle East and North Africa; Asia Pacific; and Technology. It designs, engineers, and constructs upstream offshore oil and gas facilities, downstream oil and gas facilities and pipelines, gas-fired power plants, liquefied natural gas import and export terminals, atmospheric and refrigerated storage vessels and terminals, water storage and treatment facilities, hydrocarbon processing facilities, and refining and petrochemical facilities, as well as performs pipe and module fabrication. The company also provides gas processing, refining, petrochemical and coal gasification technologies, as well as supplies proprietary catalysts, equipment, and related engineering services. It serves national, integrated, and other oil and gas companies, as well as producers of petrochemicals and electric power. The company was founded in 1923 and is headquartered in Houston, Texas. On January 21, 2020, McDermott International, Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas.
About Ares Acquisition
Ares Acquisition Corporation does not have significant operations. It intends to effect a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses. The company was incorporated in 2020 and is based in New York, New York.
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