Oceaneering International (NYSE:OII – Get Free Report) and Subsea 7 (OTC:SUBCY – Get Free Report) are both mid-cap energy companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, institutional ownership, analyst recommendations and profitability.
Profitability
This table compares Oceaneering International and Subsea 7’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Oceaneering International | 5.54% | 17.29% | 5.08% |
| Subsea 7 | 2.46% | 3.72% | 1.98% |
Dividends
Oceaneering International pays an annual dividend of $0.60 per share and has a dividend yield of 2.8%. Subsea 7 pays an annual dividend of $0.54 per share and has a dividend yield of 3.4%. Oceaneering International pays out 41.7% of its earnings in the form of a dividend. Subsea 7 pays out 80.6% 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
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Oceaneering International | 1 | 3 | 1 | 0 | 2.00 |
| Subsea 7 | 0 | 1 | 0 | 0 | 2.00 |
Oceaneering International presently has a consensus price target of $28.25, indicating a potential upside of 31.12%. Given Oceaneering International’s higher probable upside, analysts clearly believe Oceaneering International is more favorable than Subsea 7.
Earnings and Valuation
This table compares Oceaneering International and Subsea 7″s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Oceaneering International | $2.66 billion | 0.81 | $97.40 million | $1.44 | 14.96 |
| Subsea 7 | $5.97 billion | 0.80 | $15.40 million | $0.67 | 23.75 |
Oceaneering International has higher earnings, but lower revenue than Subsea 7. Oceaneering International is trading at a lower price-to-earnings ratio than Subsea 7, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
93.9% of Oceaneering International shares are held by institutional investors. Comparatively, 0.0% of Subsea 7 shares are held by institutional investors. 2.3% of Oceaneering International shares are held by company insiders. Comparatively, 1.0% of Subsea 7 shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Volatility & Risk
Oceaneering International has a beta of 2.42, suggesting that its stock price is 142% more volatile than the S&P 500. Comparatively, Subsea 7 has a beta of 1.7, suggesting that its stock price is 70% more volatile than the S&P 500.
Summary
Oceaneering International beats Subsea 7 on 12 of the 15 factors compared between the two stocks.
About Oceaneering International
Oceaneering International, Inc. provides engineered services and products, and robotic solutions to the offshore energy, defense, aerospace, manufacturing, and entertainment industries worldwide. It operates through Subsea Robotics, Manufactured Products, Offshore Projects Group, Integrity Management & Digital Solutions, and Aerospace and Defense Technologies segments. The company offers remotely operated vehicles (ROVs) for drill support and vessel-based services, including subsea hardware installation, construction, pipeline inspection, survey and facilities inspection, maintenance, and repair; ROV tooling; and survey services, such as hydrographic survey, positioning services, and autonomous underwater vehicles for geoscience. It also provides distribution and connection systems, including production control umbilicals and field development hardware, pipeline connection, and repair systems to the energy industry; and autonomous mobile robotic technology and entertainment systems to various industries. In addition, the company offers subsea installation and intervention, including riserless light well intervention inspection, maintenance, and repair services; installation and workover control systems, and ROV workover control systems; diving services; project management and engineering; and drill pipe riser services and systems, and wellhead load relief solutions. Further, it provides asset integrity management, software and analytical solutions for the bulk cargo maritime industry, and software, digital, and connectivity solutions for the energy industry, as well as government services and products, including engineering and related manufacturing in defense and space exploration activities to the United States' government agencies and their prime contractors. Oceaneering International, Inc. was founded in 1964 and is headquartered in Houston, Texas.
About Subsea 7
Subsea 7 S.A. delivers offshore projects and services for the energy industry worldwide. It provides subsea field development products and services, including project management, design and engineering, procurement, fabrication, survey, installation, and commissioning of production facilities on the seabed and the tie-back of its facilities to fixed or floating platforms or to the shore. The company also offers engineering, procurement, commissioning, and installation of subsea umbilicals, risers, and flowlines; inspection, repair, maintenance, remote intervention, and integrity management of subsea infrastructure services; conventional services comprising fabrication, installation, extension, and refurbishment of fixed and floating platforms and associated pipelines in shallow water; and hook-up services. In addition, it operates heavy lifting operations and heavy transportation services for renewables structures; and installs offshore wind turbine foundations, as well as engages in the decommissioning of redundant offshore structures. Further, the company provides remotely operated vehicles (ROVs) and tooling services to support exploration and production activities, as well as engineering and advisory services for customers in the oil and gas, renewables, and utilities industries. The company was incorporated in 1993 and is based in Luxembourg, Luxembourg.
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