Solaris Energy Infrastructure (NASDAQ:SEI – Get Free Report) and DNOW (NYSE:DNOW – Get Free Report) are both small-cap oils/energy companies, but which is the superior business? We will compare the two companies based on the strength of their risk, institutional ownership, earnings, profitability, dividends, valuation and analyst recommendations.
Insider and Institutional Ownership
67.4% of Solaris Energy Infrastructure shares are owned by institutional investors. Comparatively, 97.6% of DNOW shares are owned by institutional investors. 34.7% of Solaris Energy Infrastructure shares are owned by insiders. Comparatively, 2.6% of DNOW shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Risk & Volatility
Solaris Energy Infrastructure has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500. Comparatively, DNOW has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Solaris Energy Infrastructure | 0 | 0 | 3 | 1 | 3.25 |
| DNOW | 0 | 1 | 1 | 0 | 2.50 |
Solaris Energy Infrastructure presently has a consensus target price of $41.50, suggesting a potential upside of 52.21%. DNOW has a consensus target price of $15.50, suggesting a potential upside of 7.53%. Given Solaris Energy Infrastructure’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Solaris Energy Infrastructure is more favorable than DNOW.
Profitability
This table compares Solaris Energy Infrastructure and DNOW’s 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% |
| DNOW | 8.70% | 8.90% | 6.19% |
Valuation and Earnings
This table compares Solaris Energy Infrastructure and DNOW”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Solaris Energy Infrastructure | $292.95 million | 6.25 | $24.34 million | $0.44 | 61.97 |
| DNOW | $2.32 billion | 0.66 | $247.00 million | $1.87 | 7.71 |
DNOW has higher revenue and earnings than Solaris Energy Infrastructure. DNOW is trading at a lower price-to-earnings ratio than Solaris Energy Infrastructure, indicating that it is currently the more affordable of the two stocks.
Summary
DNOW beats Solaris Energy Infrastructure on 8 of the 15 factors compared between the two stocks.
About Solaris Energy Infrastructure
Solaris Oilfield Infrastructure, Inc. designs and manufactures specialized equipment for oil and natural gas operators in the United States. The company provides mobile proppant and fluid management systems, as well as last mile logistics management services. It offers systems, mobilization, and last mile logistics services that are used to unload, store, and deliver proppant, water and/or chemicals at oil and natural gas well sites. The company is also involved in the transloading and storage of proppant or railcars at its transloading facility. In addition, it develops Railtronix, an inventory management software; and all-electric equipment that automates the low pressure section of oil and gas well completion sites. The company serves exploration and production, and oilfield services industries. Solaris Oilfield Infrastructure, Inc. was founded in 2014 and is headquartered in Houston, Texas.
About DNOW
DNOW Inc. distributes downstream energy and industrial products for petroleum refining, chemical processing, LNG terminals, power generation utilities, and customer on-site locations in the United States, Canada, and internationally. The company provides consumable maintenance, repair, and operating supplies; pipes, manual and automated valves, fittings, flanges, gaskets, fasteners, electrical instrumentations, artificial lift, pumping solutions, valve actuation and modular process, and measurement and control equipment; and mill supplies, tools, safety supplies, and personal protective equipment, as well as artificial lift systems, coatings, and miscellaneous expendable items. It also offers original equipment manufacturer equipment, including pumps, generator sets, air compressors, dryers, blowers, mixers, and valves; modular oil and gas tank battery solutions; and application systems, work processes, parts integration, optimization solutions, and after-sales support services. In addition, the company provides supply chain and materials management; inventory planning and management, procurement, and warehouse management, as well as solutions for logistics, point of issue technology, project management, business process, and performance metrics reporting services. It serves customers in the upstream, midstream, and downstream sectors of the energy industry, including drilling contractors, well-servicing companies, independent and national oil and gas companies, midstream operators, and refineries, as well as petrochemical, chemical, utilities, RNG facilities, and other downstream energy processors; and industrial and manufacturing companies. The company was formerly known as NOW Inc. and changed its name to DNOW Inc. in January 2024. DNOW Inc. was founded in 1862 and is headquartered in Houston, Texas.
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