Solaris Energy Infrastructure (NASDAQ:SEI) & DNOW (NYSE:DNOW) Critical Contrast

DNOW (NYSE:DNOW) and Solaris Energy Infrastructure (NASDAQ:SEI) are both small-cap industrial products companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, earnings, analyst recommendations, valuation and institutional ownership.

Valuation & Earnings

This table compares DNOW and Solaris Energy Infrastructure”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DNOW	$2.32 billion	0.66	$247.00 million	$1.87	7.71
Solaris Energy Infrastructure	$292.95 million	6.25	$24.34 million	$0.44	61.97

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

Volatility and Risk

DNOW has a beta of 1.53, indicating that its share price is 53% more volatile than the S&P 500. Comparatively, Solaris Energy Infrastructure has a beta of 1.35, indicating that its share price is 35% more volatile than the S&P 500.

Profitability

This table compares DNOW and Solaris Energy Infrastructure’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DNOW	8.70%	8.90%	6.19%
Solaris Energy Infrastructure	4.80%	6.66%	4.12%

Insider & Institutional Ownership

97.6% of DNOW shares are owned by institutional investors. Comparatively, 67.4% of Solaris Energy Infrastructure shares are owned by institutional investors. 2.6% of DNOW shares are owned by company insiders. Comparatively, 34.7% of Solaris Energy Infrastructure shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations for DNOW and Solaris Energy Infrastructure, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DNOW	0	1	1	0	2.50
Solaris Energy Infrastructure	0	0	3	1	3.25

DNOW currently has a consensus price target of $15.50, suggesting a potential upside of 7.53%. Solaris Energy Infrastructure has a consensus price target of $41.50, suggesting a potential upside of 52.21%. Given Solaris Energy Infrastructure’s stronger consensus rating and higher possible upside, analysts clearly believe Solaris Energy Infrastructure is more favorable than DNOW.

Summary

DNOW beats Solaris Energy Infrastructure on 8 of the 15 factors compared between the two stocks.

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.

About Solaris Energy Infrastructure

Solaris Oilfield Infrastructure, Inc. designs and manufactures specialized equipment for oil and natural gas operators in the United States. The company provides mobile proppant and fluid management systems, as well as last mile logistics management services. It offers systems, mobilization, and last mile logistics services that are used to unload, store, and deliver proppant, water and/or chemicals at oil and natural gas well sites. The company is also involved in the transloading and storage of proppant or railcars at its transloading facility. In addition, it develops Railtronix, an inventory management software; and all-electric equipment that automates the low pressure section of oil and gas well completion sites. The company serves exploration and production, and oilfield services industries. Solaris Oilfield Infrastructure, Inc. was founded in 2014 and is headquartered in Houston, Texas.