Drilling Tools International Corp. (DTI) vs Natural Gas Services Group, Inc. (NGS)

Drilling Tools International Corp. and Natural Gas Services Group, Inc. are both Oil & Gas Equipment & Services companies. Natural Gas Services Group, Inc. is the larger, with a market value of $429.5M against $86.4M — 5.0× the size. Drilling Tools International Corp. has negative trailing earnings, so its P/E is not meaningful; Natural Gas Services Group, Inc. trades at 20.1×. Natural Gas Services Group, Inc. grew revenue faster over the last twelve months: 15.4% against −5.48%. Natural Gas Services Group, Inc. has the higher net margin (10.8% vs −1.96%) and the higher return on invested capital (4.10% vs 1.42%). Across the 18 metrics below, Drilling Tools International Corp. leads on 10 and Natural Gas Services Group, Inc. on 8.

Valuation

Metric DTI NGS Oil & Gas Equipment & Services median
P/E n/m 20.12 24.78
P/S 0.56 2.19 1.28
P/B 0.72 1.41 1.85
Price to free cash flow 17.23 n/m 15.03
EV/EBITDA 4.35 9.00 8.93
EV/Sales 0.90 3.92 1.40
Earnings yield (3.67%) 4.97% 3.12%
Free cash flow yield 5.80% (7.51%) 5.01%

Profitability

Metric DTI NGS Oil & Gas Equipment & Services median
Gross margin 72.51% 59.72% 23.27%
Operating margin 2.53% 21.57% 9.34%
Net margin (1.96%) 10.81% 4.69%
Free cash flow margin 3.27% (16.47%) 5.05%
Return on equity (2.49%) 7.30% 4.92%
Return on assets (1.31%) 3.29% 2.37%
Return on invested capital 1.42% 4.10% 4.32%

Growth

Metric DTI NGS Oil & Gas Equipment & Services median
Revenue growth (TTM) (5.48%) 15.42% 6.08%
EPS growth (last fiscal year) (222.22%) 14.60% —
Revenue growth, 5-year CAGR — 20.42% 10.60%
Net income growth, 5-year CAGR — 61.60% 0.00%

Health

Metric DTI NGS Oil & Gas Equipment & Services median
Debt to equity 0.45 1.11 0.46
Current ratio 2.18 2.01 2.11
Net debt to EBITDA 1.10 3.06 0.76

Dividend

Metric DTI NGS Oil & Gas Equipment & Services median
Dividend yield — — 2.12%
Payout ratio — 0.00 0.00

Size

Metric DTI NGS Oil & Gas Equipment & Services median
Market cap 86.44m 429.51m 1.81b

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