This Oilfield Services Provider Packs a Wallop: Flotek Industries Inc (FTK), Halliburton Company (HAL)

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Flotek Industries Inc (NYSE:FTK) operates in a somewhat complex world wherein oilfield services giant Halliburton Company (NYSE:HAL) , for instance, constitutes both a customer and a competitor of the smaller company. More direct competitors, especially vis-a-vis the chemicals sector, include Baton Rouge-based Albemarle Corporation (NYSE:ALB) and The Woodlands-headquartered Newpark Resources Inc (NYSE:NR) . Given the overlap among Flotek and its closest competitors, let’s compare a few of their respective metrics:

Metrics Albermarle Flotek Newpark
Market Capitalization $5.7 billion $730.3 million $615.4 million
PEG Ratio 1.52 0.98 1.12
Operating Margin 18.57% 18.42% 10.20%
Return on Equity 18.29% 42.73% 11.87%
Total Debt/Equity 36.20 20.63 50.51

Sources: Yahoo! Finance and TMF calculations.

Obviously, Albermarle is substantially larger than the other two companies. But Flotek is the only one of the three companies that has managed to dip beneath the magic — and desirable — 1.0 PEG ratio. Albermarle and Flotek Industries Inc (NYSE:FTK) are virtually neck-and-neck in the operating margin race. After that, Flotek essentially has run off and hidden from the other two companies in both the return on equity and debt ratio competitions.

The Foolish bottom line
Given the steady improvement in Flotek’s share price, its high standing among the analysts, its expanding international presence, and its strong metrics, I’m strongly inclined to recommend that energy-investing Fools keep close on this rapidly expanding member of the oilfield services set.

The article This Oilfield Services Provider Packs a Wallop originally appeared on Fool.com and is written by David Lee Smith.

Fool contributor David Lee Smith has no position in any stocks mentioned. The Motley Fool recommends Halliburton.

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