Critical Analysis: Sable Offshore (NYSE:SOC) & TETRA Technologies (NYSE:TTI)

Sable Offshore (NYSE:SOC) and TETRA Technologies (NYSE:TTI) are both oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, valuation, institutional ownership, risk and dividends.

Volatility and Risk

Sable Offshore has a beta of 0.32, suggesting that its share price is 68% less volatile than the S&P 500. Comparatively, TETRA Technologies has a beta of 2.04, suggesting that its share price is 104% more volatile than the S&P 500.

Profitability

This table compares Sable Offshore and TETRA Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sable Offshore	N/A	-319.58%	-39.11%
TETRA Technologies	0.27%	14.53%	4.44%

Earnings & Valuation

This table compares Sable Offshore and TETRA Technologies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sable Offshore	N/A	N/A	-$32.18 million	N/A	N/A
TETRA Technologies	$626.26 million	0.85	$25.78 million	$0.02	202.10

TETRA Technologies has higher revenue and earnings than Sable Offshore.

Institutional & Insider Ownership

26.2% of Sable Offshore shares are held by institutional investors. Comparatively, 70.2% of TETRA Technologies shares are held by institutional investors. 14.3% of Sable Offshore shares are held by insiders. Comparatively, 5.8% of TETRA Technologies 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.

Analyst Ratings

This is a summary of current recommendations and price targets for Sable Offshore and TETRA Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sable Offshore	1	0	4	0	2.60
TETRA Technologies	0	0	2	1	3.33

Sable Offshore presently has a consensus target price of $25.00, suggesting a potential upside of 3.82%. TETRA Technologies has a consensus target price of $7.00, suggesting a potential upside of 73.27%. Given TETRA Technologies’ stronger consensus rating and higher probable upside, analysts clearly believe TETRA Technologies is more favorable than Sable Offshore.

Summary

TETRA Technologies beats Sable Offshore on 10 of the 12 factors compared between the two stocks.

About Sable Offshore

Sable Offshore Corp. engages in the oil and gas exploration and development activities in the United States. The company operates through three platforms located in federal waters offshore California. It owns and operates 16 federal leases across approximately 76,000 acres and subsea pipelines, which transport crude oil, natural gas, and produced water from the platforms to the onshore processing facilities. The company was formerly known as Flame Acquisition Corp. and changed its name to Sable Offshore Corp. in February 2024. Sable Offshore Corp. was incorporated in 2020 and is based in Houston, Texas.

About TETRA Technologies

TETRA Technologies, Inc., together with its subsidiaries, operates as an energy services and solutions company. It operates through two segments, Completion Fluids & Products Division and Water & Flowback Services. The Completion Fluids & Products segment manufactures and markets clear brine fluids, additives, and associated products and services to the oil and gas industry for use in well drilling, completion, and workover operations in the United States, as well as in Latin America, Europe, Asia, the Middle East, and Africa. This segment also markets liquid and dry calcium chloride products; and TETRA PureFlow ultra-pure zinc bromide to battery technology companies. The Water & Flowback Services segment provides water management services for onshore oil and gas operators. This segment also offers frac flowback, production well testing, and other associated services in oil and gas producing regions in the United States, as well as in various basins in Latin America, Africa, Europe, and the Middle East. TETRA Technologies, Inc. was incorporated in 1981 and is headquartered in The Woodlands, Texas.