Reviewing Ranger Energy Services (NYSE:RNGR) & Western Energy Services (OTCMKTS:WEEEF)

Ranger Energy Services (NYSE:RNGR) and Western Energy Services (OTCMKTS:WEEEF) are both small-cap energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.

Valuation & Earnings

This table compares Ranger Energy Services and Western Energy Services”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ranger Energy Services	$571.10 million	0.47	$18.40 million	$0.88	13.60
Western Energy Services	$162.82 million	0.33	-$5.22 million	($0.13)	-12.23

Ranger Energy Services has higher revenue and earnings than Western Energy Services. Western Energy Services is trading at a lower price-to-earnings ratio than Ranger Energy Services, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Ranger Energy Services and Western Energy Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ranger Energy Services	3.48%	7.52%	5.42%
Western Energy Services	-2.66%	-2.06%	-1.40%

Institutional and Insider Ownership

68.1% of Ranger Energy Services shares are held by institutional investors. 2.8% of Ranger Energy Services shares are held by insiders. Comparatively, 50.0% of Western Energy Services shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations for Ranger Energy Services and Western Energy Services, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ranger Energy Services	0	2	0	0	2.00
Western Energy Services	0	0	0	0	0.00

Ranger Energy Services currently has a consensus target price of $12.50, suggesting a potential upside of 4.44%. Given Ranger Energy Services’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Ranger Energy Services is more favorable than Western Energy Services.

Volatility & Risk

Ranger Energy Services has a beta of 0.34, indicating that its stock price is 66% less volatile than the S&P 500. Comparatively, Western Energy Services has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500.

Summary

Ranger Energy Services beats Western Energy Services on 11 of the 13 factors compared between the two stocks.

About Ranger Energy Services

Ranger Energy Services, Inc. provides onshore high specification well service rigs, wireline services, and complementary services to exploration and production companies in the United States. It operates through three segments: High Specification Rigs, Wireline Services, and Processing Solutions and Ancillary Services. The High Specification Rigs segment offers well service rigs and complementary equipment and services to facilitate operations throughout the lifecycle of a well; and well maintenance services. This segment also has a fleet of 402 well service rigs. The Wireline Services segment provides wireline production and intervention services to provide information to identify and resolve well production problems through cased hole logging, perforating, mechanical, and pipe recovery services; wireline completion services that are used primarily for pump down perforating operations to create perforations or entry holes through the production casing; and pumping services. This segment also has a fleet of 66 wireline units and 29 high-pressure pump trucks. The Processing Solutions and Ancillary Services segment rents well service-related equipment consisting of fluid pumps, power swivels, well control packages, hydraulic catwalks, frac tanks, pipe racks, and pipe handling tools; and coiled tubing, decommissioning, and snubbing services, as well as provides proprietary and modular equipment for the processing of natural gas streams. This segment also engages in the rental, installation, commissioning, start up, operation, and maintenance of mechanical refrigeration units, nitrogen gas liquid stabilizer units, nitrogen gas liquid storage units, and related equipment. Ranger Energy Services, Inc. was incorporated in 2017 and is headquartered in Houston, Texas.

About Western Energy Services

Western Energy Services Corp. operates as an oilfield service company in Canada and the United States. It operates through Contract Drilling and Production Services segments. The Contract Drilling segment provides contract drilling services using drilling rigs and auxiliary equipment. The Production Services segment offers well servicing rig and related equipment, as well as rental equipment services. Western Energy Services Corp. is headquartered in Calgary, Canada.