Drilling Tools International Corp. (DTI) vs Recon Technology, Ltd. (RCON)

Drilling Tools International Corp. and Recon Technology, Ltd. are both Oil & Gas Equipment & Services companies. Drilling Tools International Corp. is the larger, with a market value of $49.7M against $1.7M — 29.3× the size. Drilling Tools International Corp. has negative trailing earnings, so its P/E is not meaningful; Recon Technology, Ltd. trades at 2.8×. Recon Technology, Ltd. grew revenue faster over the last twelve months: 36.4% against −5.48%. Recon Technology, Ltd. has the higher net margin (28.2% vs −1.96%) and the lower return on invested capital (0.00% vs 1.42%). Across the 16 metrics below, Recon Technology, Ltd. leads on 11 and Drilling Tools International Corp. on 5.

Valuation

Metric DTI RCON Oil & Gas Equipment & Services median
P/E n/m 2.83 20.53
P/S 0.33 n/m 1.08
P/B 0.42 n/m 1.64
Price to free cash flow 9.99 n/m 12.36
EV/EBITDA 3.21 0.27 8.00
EV/Sales 0.66 (0.25) 1.29
Earnings yield (6.34%) 35.29% 3.88%
Free cash flow yield 10.01% (1,420,823.53%) 5.18%

Profitability

Metric DTI RCON Oil & Gas Equipment & Services median
Gross margin 72.51% 25.29% 22.88%
Operating margin 2.53% 0.00% 7.44%
Net margin (1.96%) 28.18% 4.12%
Free cash flow margin 3.27% 0.00% 3.10%
Return on equity (2.49%) 0.00% 5.46%
Return on assets (1.31%) 0.00% 2.63%
Return on invested capital 1.42% 0.00% 4.26%

Growth

Metric DTI RCON Oil & Gas Equipment & Services median
Revenue growth (TTM) (5.48%) 36.41% 4.65%
EPS growth (last fiscal year) (222.22%) 69.78% (13.00%)
Revenue growth, 5-year CAGR — 16.89% 12.57%
Net income growth, 5-year CAGR — 0.00% 0.00%

Health

Metric DTI RCON Oil & Gas Equipment & Services median
Debt to equity 0.45 0.08 0.44
Current ratio 2.18 4.24 2.04
Net debt to EBITDA 1.10 0.19 1.12

Dividend

Metric DTI RCON Oil & Gas Equipment & Services median
Dividend yield — — 1.49%
Payout ratio — — 0.36

Size

Metric DTI RCON Oil & Gas Equipment & Services median
Market cap 49.74m 1.70m 1.44b

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