Contrasting Dril-Quip (DRQ) & Deep Down (OTCMKTS:DPDW)

Dril-Quip (NYSE: DRQ) and Deep Down (OTCMKTS:DPDW) are both small-cap oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, valuation, institutional ownership, risk and dividends.

Institutional & Insider Ownership

8.7% of Deep Down shares are held by institutional investors. 1.1% of Dril-Quip shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Dril-Quip and Deep Down’s gross revenue, earnings per share and valuation.

Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
Dril-Quip$455.47 million3.78-$100.63 million$0.26173.46
Deep Down$19.48 million0.59-$100,000.00N/AN/A

Deep Down has lower revenue, but higher earnings than Dril-Quip.

Analyst Ratings

This is a summary of current recommendations and price targets for Dril-Quip and Deep Down, as provided by MarketBeat.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
Dril-Quip07202.22
Deep Down0000N/A

Dril-Quip presently has a consensus target price of $47.14, suggesting a potential upside of 4.53%. Given Dril-Quip’s higher probable upside, analysts clearly believe Dril-Quip is more favorable than Deep Down.

Profitability

This table compares Dril-Quip and Deep Down’s net margins, return on eq....

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