Financial Analysis: QS Energy (OTCMKTS:QSEP) versus Solaris Energy Infrastructure (NASDAQ:SEI)

QS Energy (OTCMKTS:QSEP) and Solaris Energy Infrastructure (NASDAQ:SEI) are both small-cap industrial products companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, earnings, profitability, valuation and dividends.

Profitability

This table compares QS Energy and Solaris Energy Infrastructure’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
QS Energy	N/A	N/A	-1,020.74%
Solaris Energy Infrastructure	4.80%	6.66%	4.12%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for QS Energy and Solaris Energy Infrastructure, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QS Energy	0	0	0	0	0.00
Solaris Energy Infrastructure	0	0	2	0	3.00

Solaris Energy Infrastructure has a consensus price target of $30.00, suggesting a potential upside of 4.46%. Given Solaris Energy Infrastructure’s stronger consensus rating and higher probable upside, analysts clearly believe Solaris Energy Infrastructure is more favorable than QS Energy.

Earnings & Valuation

This table compares QS Energy and Solaris Energy Infrastructure”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QS Energy	N/A	N/A	-$1.22 million	N/A	N/A
Solaris Energy Infrastructure	$280.14 million	6.88	$24.34 million	$0.44	65.27

Solaris Energy Infrastructure has higher revenue and earnings than QS Energy.

Institutional & Insider Ownership

67.4% of Solaris Energy Infrastructure shares are held by institutional investors. 8.1% of QS Energy shares are held by insiders. Comparatively, 34.7% of Solaris Energy Infrastructure shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

QS Energy has a beta of -0.11, meaning that its share price is 111% less volatile than the S&P 500. Comparatively, Solaris Energy Infrastructure has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500.

Summary

Solaris Energy Infrastructure beats QS Energy on 11 of the 11 factors compared between the two stocks.

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. 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.

About Solaris Energy Infrastructure

Solaris Oilfield Infrastructure, Inc. designs and manufactures specialized equipment for oil and natural gas operators in the United States. The company provides mobile proppant and fluid management systems, as well as last mile logistics management services. It offers systems, mobilization, and last mile logistics services that are used to unload, store, and deliver proppant, water and/or chemicals at oil and natural gas well sites. The company is also involved in the transloading and storage of proppant or railcars at its transloading facility. In addition, it develops Railtronix, an inventory management software; and all-electric equipment that automates the low pressure section of oil and gas well completion sites. The company serves exploration and production, and oilfield services industries. Solaris Oilfield Infrastructure, Inc. was founded in 2014 and is headquartered in Houston, Texas.