Financial Analysis: Innovex International (INVX) and Its Peers

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations 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	190	1393	1678	47	2.48

Innovex International presently has a consensus price target of $15.00, suggesting a potential upside of 12.78%. As a group, “Oil & gas field machinery” companies have a potential upside of 27.17%. Given Innovex International’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Innovex International has less favorable growth aspects than its competitors.

Earnings and Valuation

This table compares Innovex International and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Innovex International	$424.06 million	$600,000.00	9.43
Innovex International Competitors	$4.27 billion	-$154.22 million	12.23

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

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%

Insider and 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, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Innovex International competitors beat Innovex International on 11 of the 13 factors compared.

Innovex International Company Profile

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.