Comparing Drilling Tools International (NASDAQ:DTI) and Superior Drilling Products (NYSE:SDPI)

Drilling Tools International (NASDAQ:DTI) and Superior Drilling Products (NYSE:SDPI) are both small-cap energy companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, institutional ownership and profitability.

Profitability

This table compares Drilling Tools International and Superior Drilling Products’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Drilling Tools International	9.70%	20.30%	11.50%
Superior Drilling Products	35.46%	62.62%	32.82%

Insider and Institutional Ownership

2.8% of Drilling Tools International shares are held by institutional investors. Comparatively, 43.4% of Superior Drilling Products shares are held by institutional investors. 14.7% of Drilling Tools International shares are held by company insiders. Comparatively, 51.1% of Superior Drilling Products 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.

Volatility and Risk

Drilling Tools International has a beta of -0.43, indicating that its stock price is 143% less volatile than the S&P 500. Comparatively, Superior Drilling Products has a beta of 0.04, indicating that its stock price is 96% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Drilling Tools International and Superior Drilling Products, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Drilling Tools International	0	1	0	0	2.00
Superior Drilling Products	0	0	0	0	N/A

Drilling Tools International currently has a consensus price target of $3.00, suggesting a potential downside of 44.34%. Given Drilling Tools International’s higher probable upside, equities research analysts plainly believe Drilling Tools International is more favorable than Superior Drilling Products.

Valuation & Earnings

This table compares Drilling Tools International and Superior Drilling Products’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Drilling Tools International	$152.03 million	1.06	$14.75 million	N/A	N/A
Superior Drilling Products	$20.97 million	1.80	$7.44 million	$0.24	5.19

Drilling Tools International has higher revenue and earnings than Superior Drilling Products.

Summary

Superior Drilling Products beats Drilling Tools International on 7 of the 10 factors compared between the two stocks.

About Drilling Tools International

Drilling Tools International Corporation provides oilfield equipment and services to oil and natural gas sectors in North America, Europe, and the Middle East. It offers downhole tool rentals, machining, and inspection services to support the global drilling and wellbore construction industry. The company also provides products are bottom hole assembly components, such as stabilizers, subs, non-magnetic and steel drill collars, hole openers, and roller reamers, as well as drill pipe and drill pipe accessories; ancillary equipment and handling tools to support its rental platform, including float valves, ring gauges, tool baskets, lift bail, lift subs, mud magnets, elevators, bracket and bail assemblies, slips, tongs, stabbing guides and safety clamps; and blowout preventers, and pressure control accessory equipment. In addition, it offers tool rental services, which consists of rental, inspection, machining, and repair services; rents downhole drilling tools used in horizontal and directional drilling of oil and natural gas; rents kellys, pip joints, work strings; maintains a fleet of rental equipment consisting of drill collars, stabilizers, crossover subs, wellbore conditioning tools, drill pipe, hevi-wate drill pipe, and tubing; rents surface control equipment, such as blowout preventers and handling tools; and provides downhole products for producing wells. Drilling Tools International Corporation is headquartered in Houston, Texas.

About Superior Drilling Products

Superior Drilling Products, Inc., a drilling and completion tool technology company, designs, engineers, manufactures, sells, rents, and repairs drilling and completion tools in North America and internationally. Its drilling solutions include Drill-N-Ream, a dual-section wellbore conditioning tool; Strider, a drill string oscillation system technology; and V-Stream, an advanced conditioning system. The company also engages in the manufacture and refurbishment of polycrystalline diamond compact drill bits for an oil field services company. It serves oil and natural gas drilling industry. The company was formerly known as SD Company, Inc. and changed its name to Superior Drilling Products, Inc. in May 2014. Superior Drilling Products, Inc. was founded in 1993 and is headquartered in Vernal, Utah.