Contrasting CGG SA (CGV) & RigNet (RNET)

CGG SA (NYSE: CGV) and RigNet (NASDAQ:RNET) are both energy companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, profitabiliy, dividends, valuation, analyst recommendations, risk and earnings.

Institutional and Insider Ownership

99.3% of RigNet shares are held by institutional investors. 1.2% of RigNet shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares CGG SA and RigNet’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CGG SA -59.09% -55.25% -12.45%
RigNet -5.79% -10.36% -5.04%

Valuation and Earnings

This table compares CGG SA and RigNet’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CGG SA N/A N/A N/A N/A N/A
RigNet $206.35 million 1.64 $25.82 million ($0.68) -27.57

RigNet has higher revenue and earnings than CGG SA.

Analyst Recommendations

This is a summary of recent recommendations and price targets for CGG SA and RigNet, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CGG SA 0 0 0 0 N/A
RigNet 0 2 1 0 2.33

RigNet has a consensus price target of $20.50, suggesting a potential upside of 9.33%. Given RigNet’s higher probable upside, analysts clearly believe RigNet is more favorable than CGG SA.

Summary

RigNet beats CGG SA on 8 of the 8 factors compared between the two stocks.

CGG SA Company Profile

CGG SA (CGG) is a manufacturer of geophysical equipment. The Company provides marine, land and airborne data acquisition services, as well as a range of other geoscience services, including data imaging, geoscience and petroleum engineering consulting services, and collecting, developing and licensing geological data. Its segments include Contractual Data Acquisition; Geology, Geophysics & Reservoir (GGR); Equipment, and Non-Operated Resources. The Contractual Data Acquisition includes marine, and land and multi-physics. Its GGR segment includes the Multi-client business line and the Subsurface Imaging and Reservoir business lines (processing and imaging of geophysical data, reservoir characterization, geophysical consulting and software services, geological data library and data management solutions). The Equipment segment consists of its manufacturing and sales activities for seismic equipment. It operates through Saturno, a multi-client survey over Santos Basin Offshore Brazil.

RigNet Company Profile

RigNet, Inc. (RigNet) provides customized systems and solutions serving customers with data networking and operational requirements. The Company provides voice and data network, video conferencing and monitoring, crew welfare, asset and weather monitoring, and real-time data services. It operates through two segments: Managed Services, and Systems Integration and Automation (SI&A). The Managed Services segment provides remote communications services for offshore and onshore drilling rigs and production facilities, as well as, support vessels and other remote sites. The SI&A segment provides customized solutions for customer telecommunications systems. As of December 31, 2016, the Company provided remote communications and collaborative services to approximately 500 customers reaching approximately 900 remote sites located in approximately 50 countries on six continents. It provides managed remote communications, engineered telecommunications solutions and applications.

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