Critical Comparison: Dril-Quip (DRQ) & Dresser-Rand Group (NYSE:DRC)

Dresser-Rand Group (NYSE: DRC) and Dril-Quip (NYSE:DRQ) are both energy companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, earnings, risk, analyst recommendations, valuation and institutional ownership.

Profitability

This table compares Dresser-Rand Group and Dril-Quip’s net margins, return on equity and return on assets.

Net MarginsReturn on EquityReturn on Assets
Dresser-Rand Group-4.64%-7.65%-2.86%
Dril-Quip-6.14%1.19%1.12%
Valuation and Earnings

This table compares Dresser-Rand Group and Dril-Quip’s revenue, earnings per share (EPS) and valuation.

Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
Dresser-Rand GroupN/AN/AN/A$1.0779.61
Dril-Quip$538.73 million3.17$93.22 million($0.75)-60.13

Dril-Quip has higher revenue and earnings than Dresser-Rand Group. Dril-Quip is trading at a lower price-to-earnings ratio than Dresser-Rand Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations and price targets for Dresser-Rand Group and Dril-Quip, as provided by MarketBeat.com.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
Dresser-Rand Group0000N/A
Dril-Quip07202.22

Dril-Quip has a consensus price target of $49.83, indicating a potential upside of 10.50%. Given Dril-Quip’s higher probable upside, analysts plainly believe Dril-Quip is more favorable than Dresser-Rand Group.

Summary

D....

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