Critical Contrast: Innovex International (INVX) vs. Its Peers

Innovex International (NYSE:INVX) is one of 25 publicly-traded companies in the “Oil & gas field machinery” industry, but how does it weigh in compared to its rivals? We will compare Innovex International to similar businesses based on the strength of its profitability, earnings, institutional ownership, risk, dividends, valuation and analyst recommendations.

Volatility & Risk

Innovex International has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500. Comparatively, Innovex International’s rivals have a beta of 1.42, indicating that their average stock price is 42% more volatile than the S&P 500.

Institutional and Insider Ownership

73.2% of shares of all “Oil & gas field machinery” companies are held by institutional investors. 3.1% of Innovex International shares are held by insiders. Comparatively, 11.9% of shares of all “Oil & gas field machinery” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Innovex International and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Innovex International	$550.34 million	$600,000.00	8.89
Innovex International Competitors	$4.39 billion	-$154.22 million	12.32

Innovex International’s rivals have higher revenue, but lower earnings than Innovex International. Innovex International is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a summary of current ratings and target prices for Innovex International and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innovex International	1	0	0	0	1.00
Innovex International Competitors	192	1395	1688	47	2.48

Innovex International currently has a consensus target price of $15.00, suggesting a potential upside of 19.62%. As a group, “Oil & gas field machinery” companies have a potential upside of 32.05%. Given Innovex International’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Innovex International has less favorable growth aspects than its rivals.

Profitability

This table compares Innovex International and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Innovex International	12.31%	-0.73%	-0.61%
Innovex International Competitors	2.62%	7.27%	4.56%

Summary

Innovex International rivals beat Innovex International on 11 of the 13 factors compared.

About Innovex International

Innovex Downhole Solutions Inc. designs, manufactures and installs mission-critical drilling & deployment, well construction, completion, production and fishing & intervention solutions to support upstream onshore and offshore activities. Innovex Downhole Solutions Inc., formerly known as Dril-Quip, is based in HOUSTON.