CES Energy Solutions (OTCMKTS:CESDF) vs. Calfrac Well Services (OTCMKTS:CFWFF) Financial Analysis

CES Energy Solutions (OTCMKTS:CESDF) and Calfrac Well Services (OTCMKTS:CFWFF) are both energy companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.

Dividends

CES Energy Solutions pays an annual dividend of $0.28 per share and has a dividend yield of 4.6%. Calfrac Well Services pays an annual dividend of $0.50 per share and has a dividend yield of 22.1%. CES Energy Solutions pays out 97.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Calfrac Well Services pays out 90.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Calfrac Well Services is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

42.9% of CES Energy Solutions shares are owned by institutional investors. Comparatively, 38.0% of Calfrac Well Services shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for CES Energy Solutions and Calfrac Well Services, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CES Energy Solutions	0	0	2	1	3.33
Calfrac Well Services	0	1	0	0	2.00

Profitability

This table compares CES Energy Solutions and Calfrac Well Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CES Energy Solutions	N/A	N/A	N/A
Calfrac Well Services	N/A	N/A	N/A

Valuation and Earnings

This table compares CES Energy Solutions and Calfrac Well Services”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CES Energy Solutions	N/A	N/A	N/A	$0.29	21.44
Calfrac Well Services	N/A	N/A	N/A	$0.55	4.09

Calfrac Well Services is trading at a lower price-to-earnings ratio than CES Energy Solutions, indicating that it is currently the more affordable of the two stocks.

Summary

CES Energy Solutions beats Calfrac Well Services on 5 of the 8 factors compared between the two stocks.

About CES Energy Solutions

CES Energy Solutions Corp., together with its subsidiaries, engages in design, implement, and manufacture of advanced consumable fluids and specialty chemicals in the United States and Canada. The company provides solutions for drill-bit, point of completion and stimulation, wellhead and pump-jack, and pipeline and midstream markets. Its solutions include corrosion inhibitors, demulsifiers, H2S scavengers, paraffin control products, surfactants, scale inhibitors, biocides, and other specialty products. The company also designs and implements drilling fluid systems and completion solutions for oil and natural gas producers; designs and manufactures production and specialty chemicals for use in the oil and natural gas production and industrial markets; designs, blends, and sells specialty drilling fluids; designs, blends, and sells simulation and production chemicals for oil and gas producers; and operates trucks and trailers to transport drilling fluids to operators in the oil and gas industry. In addition, it provides environmental consulting, water management and transfer services, and drilling fluids waste disposal services; and laboratory services. The company was formerly known as Canadian Energy Services & Technology Corp. and changed its name to CES Energy Solutions Corp. in June 2017. CES Energy Solutions Corp. was incorporated in 1986 and is headquartered in Calgary, Canada.

About Calfrac Well Services

Calfrac Well Services Ltd., together with its subsidiaries, provides specialized oilfield services in Canada, the United States, and Argentina. It offers hydraulic fracturing, coiled tubing, cementing, and other well completion services for the oil and natural gas industry. The company was founded in 1999 and is headquartered in Calgary, Canada.