Head-To-Head Contrast: Drilling Tools International (NASDAQ:DTI) vs. QS Energy (OTCMKTS:QSEP)

Drilling Tools International (NASDAQ:DTI) and QS Energy (OTCMKTS:QSEP) 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, analyst recommendations, valuation, profitability, institutional ownership, risk and earnings.

Insider & Institutional Ownership

2.8% of Drilling Tools International shares are held by institutional investors. 14.7% of Drilling Tools International shares are held by insiders. Comparatively, 8.1% of QS Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for Drilling Tools International and QS Energy, as provided by MarketBeat.

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

Drilling Tools International presently has a consensus target price of $3.00, indicating a potential downside of 43.40%. Given Drilling Tools International’s higher probable upside, equities analysts clearly believe Drilling Tools International is more favorable than QS Energy.

Risk and Volatility

Drilling Tools International has a beta of -0.96, meaning that its share price is 196% less volatile than the S&P 500. Comparatively, QS Energy has a beta of 0.05, meaning that its share price is 95% less volatile than the S&P 500.

Profitability

This table compares Drilling Tools International and QS Energy’s 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%
QS Energy	N/A	N/A	-925.52%

Valuation and Earnings

This table compares Drilling Tools International and QS Energy’s top-line 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	1.04	$14.75 million	N/A	N/A
QS Energy	N/A	N/A	-$1.22 million	N/A	N/A

Drilling Tools International has higher revenue and earnings than QS Energy.

Summary

Drilling Tools International beats QS Energy on 8 of the 9 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 QS Energy

QS Energy, Inc. develops and commercializes energy efficiency technologies in the United States and internationally. The company's energy efficiency technologies assist in meeting energy demands, enhancing the economics of oil transport, and reducing greenhouse gas emissions. Its intellectual properties include a portfolio of domestic and international patents, which have been developed in conjunction with and licensed from Temple University of Philadelphia, Pennsylvania. The company's primary technology comprises Applied Oil Technology, a commercial-grade crude oil pipeline transportation flow-assurance product that reduces crude oil viscosity by applying a high intensity electrical field to crude oil while in transit. It serves upstream and midstream energy sectors. The company was formerly known as Save the World Air, Inc. and changed its name to QS Energy, Inc. in August 2015. QS Energy, Inc. was incorporated in 1998 and is based in Tomball, Texas.