Key Energy Services (KEG) & Oasis Midstream Partners (OMP) Critical Analysis


Key Energy Services (NYSE: KEG) and Oasis Midstream Partners (NYSE:OMP) 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.

Profitability

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This table compares Key Energy Services and Oasis Midstream Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Key Energy Services N/A N/A N/A
Oasis Midstream Partners N/A N/A N/A

Earnings and Valuation

This table compares Key Energy Services and Oasis Midstream Partners’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Key Energy Services $436.17 million 0.83 -$127.25 million ($6.29) -2.84
Oasis Midstream Partners $182.22 million 2.88 $49.21 million $0.43 44.40

Oasis Midstream Partners has lower revenue, but higher earnings than Key Energy Services. Key Energy Services is trading at a lower price-to-earnings ratio than Oasis Midstream Partners, indicating that it is currently the more affordable of the two stocks.

Dividends

Oasis Midstream Partners pays an annual dividend of $1.57 per share and has a dividend yield of 8.2%. Key Energy Services does not pay a dividend. Oasis Midstream Partners pays out 365.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.


Analyst Ratings

This is a summary of current recommendations and price targets for Key Energy Services and Oasis Midstream Partners, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Key Energy Services 0 4 2 0 2.33
Oasis Midstream Partners 0 2 8 0 2.80

Key Energy Services presently has a consensus target price of $16.20, suggesting a potential downside of 9.19%. Oasis Midstream Partners has a consensus target price of $21.50, suggesting a potential upside of 12.62%. Given Oasis Midstream Partners’ stronger consensus rating and higher probable upside, analysts clearly believe Oasis Midstream Partners is more favorable than Key Energy Services.


Insider & Institutional Ownership

55.4% of Key Energy Services shares are held by institutional investors. Comparatively, 25.7% of Oasis Midstream Partners shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Oasis Midstream Partners beats Key Energy Services on 8 of the 11 factors compared between the two stocks.

About Key Energy Services

Key Energy Services, Inc. operates as an onshore rig-based well servicing contractor in the United States. The company's U.S. Rig Services segment is involved in the completion of newly drilled wells; workover and recompletion of existing oil and natural gas wells; well maintenance activities; and plugging and abandonment of wells at the end of their lives, as well as provision of specialty drilling services to oil and natural gas producers. Its Fluid Management Services segment offers transportation and well-site storage services for fluids utilized in drilling, completions, workover, and maintenance activities; and disposal services for fluids produced subsequent to well completion. It also operates a fleet of hot oilers used to clear soluble restrictions in a wellbore. The company's Coiled Tubing Services segment offers services for wellbore clean-outs, nitrogen jet lifts, through-tubing fishing, and formation stimulations; mills temporary isolation plugs that separate frac zones; and other pre- and post-hydraulic fracturing well preparation services. Its Fishing and Rental Services segment provides fishing services that involve recovering lost or stuck equipment in the wellbore utilizing fishing tools; and rents drill pipes, tubulars, handling tools, pressure-control equipment, pumps, power swivels, reversing units, and foam air units, as well as frac stack equipment used to support hydraulic fracturing operations and the associated flowback of frac fluids, proppants, oil, and natural gas. The company was formerly known as Key Energy Group, Inc. and changed its name to Key Energy Services, Inc. in December 1998. Key Energy Services, Inc. was founded in 1977 and is based in Houston, Texas.


About Oasis Midstream Partners

Oasis Midstream Partners LP provides crude oil, natural gas, and water-related midstream services in North America. It is involved in various activities, including natural gas gathering, compression, processing, and gas lift supply; crude oil gathering, stabilization, blending, and storage; gathering, transportation, gathering and disposal of produced and flow back water; freshwater distribution; and supply and distribution of fracwater and flushwater. OMP GP LLC serves as the general partner of the company. Oasis Midstream Partners LP was founded in 2013 and is based in Houston, Texas. The company is a subsidiary of OMS Holdings LLC.

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