Ares Acquisition (NYSE:AAC) and McDermott International (OTCMKTS:MDRIQ) Head to Head Comparison

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 valuation, earnings, analyst recommendations, institutional ownership, risk, profitability and dividends.

Analyst Recommendations

This is a summary of current recommendations and price targets for McDermott International and Ares Acquisition, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
McDermott International	0	0	0	0	N/A
Ares Acquisition	0	0	0	0	N/A

Volatility & Risk

McDermott International has a beta of 1.64, suggesting that its stock price is 64% more volatile than the S&P 500. Comparatively, Ares Acquisition has a beta of 0.01, suggesting that its stock price is 99% less volatile than the S&P 500.

Profitability

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
McDermott International	-52.07%	N/A	-13.26%
Ares Acquisition	N/A	-41.82%	2.09%

Valuation and Earnings

This table compares McDermott International and Ares Acquisition’s top-line 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.

Insider and Institutional 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 insiders. Comparatively, 20.0% of Ares Acquisition 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.

Summary

Ares Acquisition beats McDermott International on 5 of the 8 factors compared between the two stocks.

About McDermott International

(Get Rating)

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

(Get Rating)

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.