Reviewing Forum Energy Technologies (NYSE:FET) & Drilling Tools International (NASDAQ:DTI)

Forum Energy Technologies (NYSE:FET) and Drilling Tools International (NASDAQ:DTI) are both small-cap oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, profitability, earnings, dividends, institutional ownership, analyst recommendations and risk.

Analyst Ratings

This is a breakdown of current ratings and target prices for Forum Energy Technologies and Drilling Tools International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Forum Energy Technologies	0	0	0	0	N/A
Drilling Tools International	0	1	0	0	2.00

Drilling Tools International has a consensus target price of $3.00, indicating a potential upside of 2.74%. Given Drilling Tools International’s higher probable upside, analysts clearly believe Drilling Tools International is more favorable than Forum Energy Technologies.

Profitability

This table compares Forum Energy Technologies and Drilling Tools International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Forum Energy Technologies	-2.56%	-0.38%	-0.19%
Drilling Tools International	N/A	N/A	N/A

Institutional & Insider Ownership

65.6% of Forum Energy Technologies shares are held by institutional investors. Comparatively, 2.8% of Drilling Tools International shares are held by institutional investors. 11.0% of Forum Energy Technologies shares are held by insiders. Comparatively, 22.2% of Drilling Tools International shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Forum Energy Technologies and Drilling Tools International’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Forum Energy Technologies	$738.90 million	0.31	-$18.88 million	($1.85)	-10.20
Drilling Tools International	N/A	N/A	N/A	N/A	N/A

Drilling Tools International has lower revenue, but higher earnings than Forum Energy Technologies.

Volatility & Risk

Forum Energy Technologies has a beta of 2.6, meaning that its stock price is 160% more volatile than the S&P 500. Comparatively, Drilling Tools International has a beta of -0.44, meaning that its stock price is 144% less volatile than the S&P 500.

Summary

Drilling Tools International beats Forum Energy Technologies on 5 of the 8 factors compared between the two stocks.

About Forum Energy Technologies

Forum Energy Technologies, Inc. designs, manufactures, and distributes products serving the oil, natural gas, industrial, and renewable energy industries in the United States and internationally. It operates through three segments: Drilling & Downhole, Completions, and Production. The Drilling & Downhole segment designs, manufactures, and supplies products, and provides related services to the drilling, well construction, artificial lift, and subsea energy construction and services markets, including applications in oil and natural gas, renewable energy, defense, and communications. This segment offers drilling technologies consisting of capital equipment and a line of products consumed in the drilling process; well construction casing and cementing equipment, and products for artificial lift equipment and cables; and subsea remotely operated vehicles and trenchers, submarine rescue vehicles, specialty components and tools, and technical services. The Completions segment offers hydraulic fracturing pumps, cooling systems, high-pressure flexible hoses, and flow iron for pressure pumping markets; wireline cable and pressure control equipment for well completion and intervention service markets; and coiled tubing strings and coiled line pipe and related services. The Production segment designs, manufactures, and supplies products, and provides related equipment and services for production and infrastructure markets. This segment offers engineered process systems, production equipment, specialty separation equipment, and various industrial valves for oil and natural gas customers, power generation, renewable energy, and other general industrial applications. The company was formerly known as Forum Oilfield Technologies, Inc. and changed its name to Forum Energy Technologies, Inc. in August 2010. Forum Energy Technologies, Inc. was incorporated in 2005 and is headquartered in Houston, Texas.

About Drilling Tools International

Drilling Tools International Corp. provides oilfield equipment and services to oil and natural gas sectors in North America, Europe, and the Middle East. It offers downhole desander and filters; non-mag and steel drill collars; tubulars; flapper plugs; and well bore conditioning and fraction reduction technologies. The company also provides hole openers, roller reamers, and extended reach drilling tools; stabilizers comprising integral blade, sleeve, and welded blade string stabilizers, as well as hard facing tools; stinger valves; and sub-assemblies, which includes heat-treated steel and non-magnetic metal subs. In addition, it offers handling tools, such as elevators, brackets and bail assembly, slips, tongs, stabbing guides, and safety clamps; blowout preventors and pressure control equipment; and drilling accessories including float valve, ring gauge, tool basket, lift bail, and ditch magnet. Further, the company provides downhole inspection, well fence data automation, and compass services. Drilling Tools International Corp. was founded in 1984 and is headquartered in Houston, Texas.