Critical Review: Innovex International (INVX) versus Its Rivals

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

Profitability

This table compares Innovex International and its competitors’ 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%

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Innovex International	$550.34 million	$600,000.00	10.71
Innovex International Competitors	$4.39 billion	-$154.22 million	13.09

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

Volatility & Risk

Innovex International has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500. Comparatively, Innovex International’s competitors have a beta of 1.42, suggesting that their average share price is 42% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Innovex International and its competitors, 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	195	1400	1694	47	2.48

Innovex International currently has a consensus price target of $15.00, indicating a potential downside of 0.66%. As a group, “Oil & gas field machinery” companies have a potential upside of 23.50%. Given Innovex International’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Innovex International has less favorable growth aspects than its competitors.

Institutional and Insider Ownership

73.2% of shares of all “Oil & gas field machinery” companies are held by institutional investors. 1.7% of Innovex International shares are held by company insiders. Comparatively, 11.9% of shares of all “Oil & gas field machinery” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Innovex International competitors 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.