Comparing Solaris Energy Infrastructure and Innovex International

Solaris Energy Infrastructure (NASDAQ:SEI) and Innovex International (NYSE:INVX) are two small-cap companies operating within the oil and energy sector. This article aims to explore and analyze their respective performances to determine which stock might be the more promising investment.

Insider and Institutional Ownership

Understanding the ownership structure of a company can provide insight into its potential stability and growth. For Solaris Energy Infrastructure, approximately 67.4% of its shares are currently held by institutional investors. In addition, 34.7% of shares are owned by insiders, which suggests confidence from those within the company. On the other hand, Innovex International has a much lower insider ownership at just 3.1%. A significant level of institutional ownership often indicates that major investors believe the company has strong long-term growth prospects.

Profitability

Profitability metrics are vital for assessing the financial health of any business. Below is a comparison between Solaris Energy Infrastructure and Innovex International in terms of net margins, return on equity, and return on assets.

	Net Margins	Return on Equity	Return on Assets
Solaris Energy Infrastructure	4.80%	6.66%	4.12%
Innovex International	12.31%	-0.73%	-0.61%

From this comparison, it's clear that Innovex International has higher net margins, while Solaris Energy Infrastructure has better returns on equity and assets.

Analyst Recommendations

Analyst ratings can provide a perspective on how experts view each stock's potential. A summary of the recommendations and price targets shows the following:

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solaris Energy Infrastructure	0	0	2	0	3.00
Innovex International	1	0	0	0	1.00

For Solaris Energy Infrastructure, analysts have a consensus price target of $30.00, suggesting a modest upside potential of 12.91%. In comparison, Innovex International's price target is $15.00, reflecting a higher upside of 16.28%. This indicates that analysts may view Innovex International more favorably due to its potential for appreciation.

Volatility and Risk

The risk associated with stock investments is often gauged through volatility. Solaris Energy Infrastructure has a beta of 1.45, meaning its stock is 45% more volatile than the S&P 500 index. Conversely, Innovex International has a lower beta of 0.88, indicating its stock price is less volatile than the broader market, by 12%.

Valuation & Earnings

Comparing the financials of the two companies offers insight into their valuations:

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Solaris Energy Infrastructure	$280.14 million	5.75	$24.34 million	$0.44	60.39
Innovex International	$550.34 million	1.58	$600,000.00	$1.41	9.15

While Solaris Energy Infrastructure generates higher earnings, Innovex International has a larger revenue stream. Furthermore, Innovex is priced at a lower price-to-earnings ratio than Solaris, suggesting that it may offer better value at its current price level.

Summary

Based on the assessment of ten key factors, Solaris Energy Infrastructure outperformed Innovex International in a majority of the areas compared. However, investors may find Innovex International appealing due to its higher potential upside and lower price-to-earnings ratio.

About Solaris Energy Infrastructure

Solaris Oilfield Infrastructure, Inc. designs and manufactures specialized equipment for oil and gas operators in the United States. The company provides various systems and services essential for logistics and management at well sites.

About Innovex International

Innovex Downhole Solutions Inc. focuses on designing, manufacturing, and installing solutions that support oil and gas drilling operations, both onshore and offshore. The company has considerable experience in the industry.

Solaris, Innovex, Energy, Stocks