Analyzing Innovex International (NYSE:INVX) & DNOW (NYSE:DNOW)

Innovex International (NYSE:INVX) and DNOW (NYSE:DNOW) are both small-cap oils/energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, risk, dividends, institutional ownership and profitability.

Earnings and Valuation

This table compares Innovex International and DNOW”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innovex International	$550.34 million	2.05	$600,000.00	$1.41	11.91
DNOW	$2.32 billion	0.69	$247.00 million	$1.87	8.07

DNOW has higher revenue and earnings than Innovex International. DNOW is trading at a lower price-to-earnings ratio than Innovex International, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings for Innovex International and DNOW, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innovex International	1	0	0	1	2.50
DNOW	0	1	1	0	2.50

Innovex International presently has a consensus price target of $15.00, suggesting a potential downside of 10.66%. DNOW has a consensus price target of $15.50, suggesting a potential upside of 2.67%. Given DNOW’s higher possible upside, analysts plainly believe DNOW is more favorable than Innovex International.

Risk & Volatility

Innovex International has a beta of 0.89, suggesting that its share price is 11% less 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.

Institutional and Insider Ownership

97.6% of DNOW shares are owned by institutional investors. 3.1% of Innovex International shares are owned by insiders. Comparatively, 2.6% of DNOW shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Innovex International and DNOW’s 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%
DNOW	8.70%	8.90%	6.19%

Summary

DNOW beats Innovex International on 9 of the 14 factors compared between the two stocks.

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.

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.