Head-To-Head Survey: Drilling Tools International (NASDAQ:DTI) & TechnipFMC (NYSE:FTI)

Drilling Tools International (NASDAQ:DTI) and TechnipFMC (NYSE:FTI) are both oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, valuation, risk, dividends and analyst recommendations.

Risk & Volatility

Drilling Tools International has a beta of -0.9, meaning that its stock price is 190% less volatile than the S&P 500. Comparatively, TechnipFMC has a beta of 1.58, meaning that its stock price is 58% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Drilling Tools International	8.21%	14.88%	9.04%
TechnipFMC	2.61%	9.57%	3.14%

Valuation and Earnings

This table compares Drilling Tools International and TechnipFMC’s 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	$0.43	12.53
TechnipFMC	$7.82 billion	1.42	$56.20 million	$0.47	54.67

TechnipFMC has higher revenue and earnings than Drilling Tools International. Drilling Tools International is trading at a lower price-to-earnings ratio than TechnipFMC, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

2.8% of Drilling Tools International shares are owned by institutional investors. Comparatively, 96.6% of TechnipFMC shares are owned by institutional investors. 14.7% of Drilling Tools International shares are owned by insiders. Comparatively, 1.1% of TechnipFMC shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Drilling Tools International and TechnipFMC, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Drilling Tools International	0	1	0	0	2.00
TechnipFMC	0	4	10	0	2.71

Drilling Tools International presently has a consensus target price of $3.00, indicating a potential downside of 44.34%. TechnipFMC has a consensus target price of $27.21, indicating a potential upside of 5.88%. Given TechnipFMC’s stronger consensus rating and higher possible upside, analysts plainly believe TechnipFMC is more favorable than Drilling Tools International.

Summary

TechnipFMC beats Drilling Tools International on 10 of the 14 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 TechnipFMC

TechnipFMC plc engages in the energy projects, technologies, and systems and services businesses in Europe, Central Asia, North America, Latin America, the Asia Pacific, Africa, the Middle East, and internationally. It operates through two segments: Subsea and Surface Technologies. The Subsea segment engages in the design, engineering, procurement, manufacturing, fabrication, installation, and life of field services for subsea systems, subsea field infrastructure, and subsea pipe systems used in oil and gas production and transportation. It provides subsea production and processing system; flexible pipe; subsea umbilicals, risers, and flowlines; vessels; robotics; well and asset services; and Subsea Studio for optimizing the development, execution, and operation of current and future subsea fields. The Surface Technologies segment designs, manufactures, and services products and systems used in land and shallow water exploration and production of crude oil and natural gas. This segment offers drilling; surface wellheads and production trees systems; iComplete, a pressure control system; fracturing tree and manifold systems; flexible pipes; safety and integrity systems, multiphase meter modules, in-line separation and processing systems, and standard pumps; well control and integrity systems; separation and processing systems; skid systems; and flow measurement and automation solutions. It also offers planning, testing and installation, commissioning, operations, replacement and upgrade, maintenance, storage, preservation, intervention, integrity, decommissioning, and abandonment; and supplies flowline products and services. TechnipFMC plc was founded in 1884 and is headquartered in Houston, Texas.