Critical Survey: DMC Global (NASDAQ:BOOM) and STEP Energy Services (OTCMKTS:SNVVF)

DMC Global (NASDAQ:BOOM) and STEP Energy Services (OTCMKTS:SNVVF) are both energy companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Profitability

This table compares DMC Global and STEP Energy Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DMC Global	2.29%	6.09%	2.83%
STEP Energy Services	N/A	N/A	N/A

Insider & Institutional Ownership

77.6% of DMC Global shares are owned by institutional investors. 2.8% of DMC Global shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for DMC Global and STEP Energy Services, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DMC Global	0	0	2	0	3.00
STEP Energy Services	0	0	0	0	N/A

DMC Global currently has a consensus price target of $21.50, suggesting a potential upside of 80.67%. Given DMC Global’s higher probable upside, analysts clearly believe DMC Global is more favorable than STEP Energy Services.

Earnings & Valuation

This table compares DMC Global and STEP Energy Services’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DMC Global	$684.23 million	0.35	$26.26 million	$1.22	9.75
STEP Energy Services	N/A	N/A	N/A	N/A	N/A

DMC Global has higher revenue and earnings than STEP Energy Services.

Summary

DMC Global beats STEP Energy Services on 8 of the 8 factors compared between the two stocks.

About DMC Global

DMC Global Inc. provides a suite of engineered products and various solutions for the construction, energy, industrial processing, and transportation markets worldwide. The company operates through three segments: Arcadia, DynaEnergetics, and NobelClad. The Arcadia segment manufactures, assembles, and sells architectural building products, including exterior and interior framing systems, curtain walls, windows, doors, and interior partitions; architectural components, architectural framing systems, entrance systems, and sun control products; sliding and glazing systems; and thermally broken steel, aluminum windows and doors, and wood doors and windows. It sells its products through a national in-house sales force for buildings, such as office towers, airports, hotels, education and athletic facilities, health care locations, government buildings, retail centers, mixed use, and multi-family residential buildings. The DynaEnergetics segment designs, manufactures, markets, and sells perforating systems, including initiation systems, shaped charges, detonating cords, gun hardware, and control panels; and perforating systems and associated hardware for the oil and gas industry. It sells its products through direct selling, distributors, and independent sales representatives. The NobelClad segment produces and sells explosion-welded clad metal plates for use in the construction of heavy, corrosion resistant pressure vessels, and heat exchangers for oil and gas, chemical and petrochemical, alternative energy, hydrometallurgy, aluminum production, shipbuilding, rail car manufacturing, power generation, and industrial refrigeration industries. It sells its products through direct sales personnel, program managers, and independent sales representatives. The company was formerly known as Dynamic Materials Corporation and changed its name to DMC Global Inc. in November 2016. DMC Global Inc. was founded in 1965 and is headquartered in Broomfield, Colorado.

About STEP Energy Services

STEP Energy Services Ltd., an energy services company, provides integrated coiled tubing, fluid and nitrogen pumping, and hydraulic fracturing to service oil and natural gas industry in Canada and the United States. It also provides fluid pumping services for coiled tubing operations and involved in standalone projects; pipeline commissioning and maintenance services; fracturing logistics services; and laboratory services. In addition, the company offers pipeline, facility maintenance, pipeline pigging, and purging services. STEP Energy Services Ltd. was incorporated in 2011 and is headquartered in Calgary, Canada.