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 $58.9M against $2.2M — 27.0× the size. Drilling Tools International Corp. has negative trailing earnings, so its P/E is not meaningful; Recon Technology, Ltd. trades at 3.3×. 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 3.30 22.50
P/S 0.43 n/m 1.17
P/B 0.55 n/m 1.82
Price to free cash flow 13.08 n/m 13.72
EV/EBITDA 3.70 0.27 8.68
EV/Sales 0.77 (0.25) 1.34
Earnings yield (4.84%) 30.30% 3.94%
Free cash flow yield 7.64% (1,219,898.99%) 5.66%

Profitability

Metric DTI RCON Oil & Gas Equipment & Services median
Gross margin 72.51% 25.29% 23.26%
Operating margin 2.53% 0.00% 9.34%
Net margin (1.96%) 28.18% 4.69%
Free cash flow margin 3.27% 0.00% 5.35%
Return on equity (2.49%) 0.00% 4.92%
Return on assets (1.31%) 0.00% 2.37%
Return on invested capital 1.42% 0.00% 4.32%

Growth

Metric DTI RCON Oil & Gas Equipment & Services median
Revenue growth (TTM) (5.48%) 36.41% 6.08%
EPS growth (last fiscal year) (222.22%) 69.78% (13.00%)
Revenue growth, 5-year CAGR — 16.89% 14.44%
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 0.46
Current ratio 2.18 4.24 2.07
Net debt to EBITDA 1.10 0.19 0.75

Dividend

Metric DTI RCON Oil & Gas Equipment & Services median
Dividend yield — — 1.51%
Payout ratio — — 0.38

Size

Metric DTI RCON Oil & Gas Equipment & Services median
Market cap 58.92m 2.18m 1.63b

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