Critical Survey: Innovex International (INVX) versus Its Rivals

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 peers? We will compare Innovex International to related companies based on the strength of its analyst recommendations, dividends, valuation, institutional ownership, risk, profitability and earnings.

Insider & Institutional Ownership

73.2% of shares of all “Oil & gas field machinery” companies are owned by institutional investors. 3.1% of Innovex International shares are owned by insiders. Comparatively, 11.9% of shares of all “Oil & gas field machinery” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Innovex International and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Innovex International	$550.34 million	$600,000.00	9.44
Innovex International Competitors	$4.38 billion	-$154.22 million	10.86

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

Profitability

This table compares Innovex International and its peers’ 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%

Analyst Recommendations

This is a summary of current recommendations for Innovex International and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innovex International	1	0	0	0	1.00
Innovex International Competitors	191	1393	1684	47	2.48

Innovex International currently has a consensus target price of $15.00, suggesting a potential upside of 12.70%. As a group, “Oil & gas field machinery” companies have a potential upside of 34.67%. Given Innovex International’s peers stronger consensus rating and higher possible upside, analysts clearly believe Innovex International has less favorable growth aspects than its peers.

Volatility and Risk

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

Summary

Innovex International peers 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.