NESR vs Suburban Propane

NESR and Suburban Propane are analysed side by side to compare business models, financial performance, and market context. This page provides a neutral overview of how each company operates, the factors that shape value, and their roles within the energy services and propane sectors. The aim is to present clear, accessible information to support understanding for readers, not to drive investment decisions. Educational content, not financial advice.

Comparison Snapshot

Key Financial Metrics

NESR

Metric

SPH

$1.85B

Market Cap

$1.28B

-0.20%

Potential Profit

-13.44%

Buy

Analyst Rating

Strong Buy

Investment Analysis

NESR

Pros

Strong revenue growth of 13.6% in 2024, reaching $1.3 billion, driven by oilfield services in the Middle East and North Africa.
Significant earnings improvement with a 506.6% increase in net income to $76.31 million in 2024, enhancing profitability metrics.
Attracts bullish analyst sentiment with a consensus 'Strong Buy' rating and a 52% upside price target over the next 12 months.

Considerations

Relatively low quick ratio of 0.89 indicates limited short-term liquidity, which may constrain flexibility in volatile markets.
Modest return on assets at 4.34% points to moderate asset efficiency compared to industry peers.
Exposure concentrated primarily in the Middle East and North Africa oilfield services region, raising geopolitical and commodity price risks.

Suburban Propane

SPH

Pros

Established market presence serving approximately 1 million customers across 41-42 states with a diversified product portfolio including propane, fuel oil, RNG, and electricity.
Recent $69 million debt reduction funded by operating cash flow and equity programs enhances financial stability and lowers leverage.
Pays a steady quarterly distribution yielding an annualised rate of $1.30 per unit, supporting income-oriented investors.

Considerations

Consolidated leverage ratio remains elevated at 4.33x, reflecting significant debt relative to earnings capacity.
Renewable natural gas segment faces headwinds from lower daily injection rates and a decline in environmental attribute prices.
Exposure to US regional fuel distribution markets may expose the company to regulatory and weather-related demand volatility.

About The Companies

NESR (NESR)

National Energy Services Reunited Corp. (NESR) is a prominent oilfield service provider focused on the Middle East, North Africa (MENA), and Asia Pacific (APAC) regions. The company's operations are divided into two key segments: Production Services, which includes activities like hydraulic fracturing and cementing, and Drilling & Evaluation Services, covering directional drilling and well testing. By offering a comprehensive range of services, NESR supports energy companies throughout the entire lifecycle of a well, from initial exploration to ongoing production. With a strong operational footprint in key markets such as Saudi Arabia, the UAE, and Oman, the company is positioned as a significant player in some of the world's most important energy-producing areas. For investors, NESR represents a focused investment in the energy services sector within these specific, high-activity regions. As with any investment, its value can go down as well as up.

Suburban Propane (SPH)

Suburban Propane Partners, L.P. is a prominent nationwide distributor of energy products across the United States. While its core business is the distribution of propane to residential, commercial, and agricultural customers, the company has diversified its offerings. Its operations also include the distribution of fuel oil and other refined fuels, the marketing of natural gas and electricity in certain states, and strategic investments in low-carbon and renewable energy alternatives. As a Master Limited Partnership (MLP), its structure is designed to distribute available cash to its unitholders. An investment in a company like this involves considering factors such as energy market fluctuations, seasonal demand, and regulatory changes. As with any investment, capital is at risk and the value of shares can go down as well as up.

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Frequently asked questions

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Frequently asked questions

What does revenue growth tell us about a stock, and how is it relevant when comparing NESR and Suburban Propane?

How should I interpret the earnings improvement and profitability signals for NESR?

What does a 'Strong Buy' consensus imply, and how should I treat this in a comparison?

Why is liquidity, such as a quick ratio, important when evaluating NESR and Suburban Propane?

How does leverage impact the risk profile of Suburban Propane compared with NESR?

What role does geographic exposure play in the risk assessment of NESR and Suburban Propane?

How do business models differ between NESR and Suburban Propane, and why does that matter?

What should I look for when evaluating a stock with a steady distribution, like Suburban Propane?

How does debt reduction, such as Suburban Propane’s recent financing actions, affect a reader’s interpretation?

What limitations should I recognise when comparing two very different energy-related stocks like NESR and Suburban Propane?

Is it appropriate to rely on a single year’s metrics when comparing these stocks?

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Comparison Snapshot

About The Companies