NPK International (NYSE:NPKI – Get Free Report) and DNOW (NYSE:DNOW – Get Free Report) are both small-cap energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, analyst recommendations, dividends, earnings and risk.
Institutional & Insider Ownership
80.8% of NPK International shares are held by institutional investors. Comparatively, 97.6% of DNOW shares are held by institutional investors. 4.8% of NPK International shares are held by insiders. Comparatively, 2.6% of DNOW shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares NPK International and DNOW’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NPK International | -28.47% | 5.93% | 4.08% |
| DNOW | 3.41% | 9.04% | 6.28% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NPK International | $217.49 million | 2.34 | $14.52 million | ($1.72) | -3.41 |
| DNOW | $2.37 billion | 0.73 | $81.00 million | $0.73 | 22.52 |
DNOW has higher revenue and earnings than NPK International. NPK International is trading at a lower price-to-earnings ratio than DNOW, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and price targets for NPK International and DNOW, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NPK International | 0 | 0 | 1 | 0 | 3.00 |
| DNOW | 0 | 1 | 1 | 0 | 2.50 |
NPK International currently has a consensus price target of $12.00, indicating a potential upside of 104.43%. DNOW has a consensus price target of $17.00, indicating a potential upside of 3.42%. Given NPK International’s stronger consensus rating and higher probable upside, equities analysts clearly believe NPK International is more favorable than DNOW.
Risk and Volatility
NPK International has a beta of 2.86, suggesting that its stock price is 186% more volatile than the S&P 500. Comparatively, DNOW has a beta of 1.51, suggesting that its stock price is 51% more volatile than the S&P 500.
Summary
DNOW beats NPK International on 8 of the 13 factors compared between the two stocks.
About NPK International
NPK International Inc. provides products, rentals, and services primarily to the oil and natural gas exploration and production (E&P) industry. It operates through two segments, Fluids Systems and Industrial Solutions. The Fluids Systems segment provides drilling, completion, and stimulation fluids products and related technical services to customers primarily in the North America, Europe, the Middle East, and Africa, as well as other countries in the Asia Pacific and Latin America. The Industrial Solutions segment offers composite matting system rentals utilized for temporary worksite access; related site construction and services to customers in various markets, including power transmission, E&P, pipeline, renewable energy, petrochemical, construction, and other industries primarily in the United States and Europe; recyclable composite mats to customers worldwide; and access road construction, site planning and preparation, environmental protection, erosion control, and site restoration services. The company was formerly known as Newpark Resources, Inc. and changed its name to NPK International Inc. in December 2024. The company was incorporated in 1932 and is headquartered in The Woodlands, Texas.
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.
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