Solaris Energy Infrastructure (SEI) and Its Competitors Financial Analysis

Solaris Energy Infrastructure (NASDAQ:SEI) is a notable player among publicly-traded companies in the oil and gas field machinery sector. In this article, we will analyze Solaris Energy Infrastructure's financial health compared to its competitors, focusing on valuation, profitability, risk measures, institutional ownership, earnings, dividends, and analyst recommendations.

Analyst Recommendations

The following table presents the current recommendations and price targets for Solaris Energy Infrastructure and its competitors, according to MarketBeat:

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solaris Energy Infrastructure	0	0	2	0	3.00
Competitors	191	1395	1687	47	2.48

Currently, Solaris Energy Infrastructure has a consensus price target of $30.00, suggesting a potential upside of 11.65%. In contrast, companies in the oil and gas field machinery category have a higher potential upside of 33.48%. This indicates that analysts view Solaris Energy Infrastructure as having less growth potential compared to its peers.

Volatility and Risk

Solaris Energy Infrastructure exhibits more volatility with a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500 index. Conversely, its competitors have a beta of 1.42, which means their average share price is 42% more volatile than the S&P 500.

Profitability

The following table compares the profitability metrics of Solaris Energy Infrastructure against its competitors:

	Net Margins	Return on Equity	Return on Assets
Solaris Energy Infrastructure	4.80%	6.66%	4.12%
Competitors	2.62%	7.27%	4.56%

Solaris Energy Infrastructure demonstrates higher net margins and return on assets compared to its competitors, while its return on equity is slightly lower than the average of the group.

Dividends

The company pays an annual dividend of $0.48 per share, resulting in a dividend yield of 1.8%. However, it is noteworthy that Solaris Energy Infrastructure distributes 109.1% of its earnings as dividends, raising concerns about its capacity to sustain dividends in the long run. In contrast, competitors in the sector pay a lower dividend yield of 1.5% and distribute only 23.2% of their earnings.

Valuation and Earnings

The table below outlines the gross revenue, net income, and valuation metrics for Solaris Energy Infrastructure and its competitors:

	Gross Revenue	Net Income	Price/Earnings Ratio
Solaris Energy Infrastructure	$280.14 million	$24.34 million	61.07
Competitors	$4.39 billion	-$154.22 million	12.51

While Solaris Energy Infrastructure achieves higher net income, its revenue is significantly lower than that of its competitors. Additionally, it trades at a much higher price-to-earnings ratio, indicating a premium valuation compared to other players in the industry.

Institutional and Insider Ownership

Institutional investors hold 67.4% of Solaris Energy Infrastructure shares, while the average institutional ownership across all oil and gas field machinery companies is 73.2%. Furthermore, insider ownership stands at 34.7% for Solaris, far exceeding the 11.9% average for its competitors. This significant institutional backing suggests confidence in the long-term growth potential of Solaris Energy Infrastructure.

Summary

In summary, Solaris Energy Infrastructure outperforms its competitors on eight out of the fifteen factors considered in this analysis, marking it as a robust option in comparison to the industry.

About Solaris Energy Infrastructure

Solaris Oilfield Infrastructure, Inc. designs and manufactures specialized equipment for oil and gas operations in the United States. The company specializes in mobile proppant and fluid management systems, alongside last mile logistics services. Their offerings aid in the unloading, storage, and delivery of proppant, water, and chemicals at well sites. Additionally, Solaris is engaged in the transloading and storage of proppant at their facilities and has developed inventory management software named Railtronix, along with electric equipment that automates low-pressure operations at oil and gas sites. Founded in 2014, Solaris Oilfield Infrastructure is headquartered in Houston, Texas.

Solaris, Energy, Competitors