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 $86.4M against $2.8M — 31.2× the size. Drilling Tools International Corp. has negative trailing earnings, so its P/E is not meaningful; Recon Technology, Ltd. trades at 4.7×. 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 17 metrics below, Drilling Tools International Corp. leads on 9 and Recon Technology, Ltd. on 8.

Valuation

Metric DTI RCON Oil & Gas Equipment & Services median
P/E n/m 4.67 24.78
P/S 0.56 2.11 1.28
P/B 0.72 0.74 1.85
Price to free cash flow 17.23 n/m 15.03
EV/EBITDA 4.35 n/m 8.93
EV/Sales 0.90 1.86 1.40
Earnings yield (3.67%) 21.43% 3.12%
Free cash flow yield 5.80% (22.00%) 5.01%

Profitability

Metric DTI RCON Oil & Gas Equipment & Services median
Gross margin 72.51% 25.29% 23.27%
Operating margin 2.53% 0.00% 9.34%
Net margin (1.96%) 28.18% 4.69%
Free cash flow margin 3.27% 0.00% 5.05%
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%) 52.21% —
Revenue growth, 5-year CAGR — (0.10%) 10.60%
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 2.11
Net debt to EBITDA 1.10 1.31 0.76

Dividend

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

Size

Metric DTI RCON Oil & Gas Equipment & Services median
Market cap 86.44m 2.77m 1.81b

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