Flowco Holdings Inc. (FLOC) vs National Energy Services Reunited (NESR)

Flowco Holdings Inc. and National Energy Services Reunited are both Oil & Gas Equipment & Services companies. National Energy Services Reunited is the larger, with a market value of $1.9B against $1.7B — 1.2× the size. Flowco Holdings Inc. trades at the lower P/E: 11.7× against 19.9×. National Energy Services Reunited grew revenue faster over the last twelve months: 23.6% against 7.70%. Flowco Holdings Inc. has the higher net margin (6.07% vs 5.77%) and the higher return on invested capital (14.7% vs 8.28%). Across the 20 metrics below, Flowco Holdings Inc. leads on 14 and National Energy Services Reunited on 6.

Valuation

Metric FLOC NESR Oil & Gas Equipment & Services median
P/E 11.68 19.93 22.50
P/S 0.98 1.17 1.17
P/B 2.21 1.81 1.82
Price to free cash flow 5.94 11.68 13.72
EV/EBITDA 3.27 6.84 8.68
EV/Sales 1.34 1.23 1.34
Earnings yield 8.56% 5.02% 3.94%
Free cash flow yield 16.84% 8.56% 5.66%

Profitability

Metric FLOC NESR Oil & Gas Equipment & Services median
Gross margin 55.06% 13.37% 23.26%
Operating margin 18.80% 9.34% 9.34%
Net margin 6.07% 5.77% 4.69%
Free cash flow margin 16.56% 9.99% 5.35%
Return on equity 19.29% 9.44% 4.92%
Return on assets 2.82% 4.76% 2.37%
Return on invested capital 14.74% 8.28% 4.32%

Growth

Metric FLOC NESR Oil & Gas Equipment & Services median
Revenue growth (TTM) 7.70% 23.55% 6.08%
EPS growth (last fiscal year) (88.09%) (35.00%) (13.00%)
Revenue growth, 5-year CAGR — 9.68% 14.44%
Net income growth, 5-year CAGR — 0.41% 0.00%

Health

Metric FLOC NESR Oil & Gas Equipment & Services median
Debt to equity 0.84 0.26 0.46
Current ratio 2.67 1.02 2.07
Net debt to EBITDA 0.57 0.77 0.75

Dividend

Metric FLOC NESR Oil & Gas Equipment & Services median
Dividend yield 1.81% — 1.51%
Payout ratio 0.27 — 0.38

Size

Metric FLOC NESR Oil & Gas Equipment & Services median
Market cap 1.66b 1.93b 1.63b

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