ProPetro vs. Expion360: Is an Old Energy or New Energy Stock the Way to Go?

Investing in energy isn’t just a matter of finding the best value stock. It means deciding if you want the safety of traditional fossil fuels or the growth potential of renewable energy. Investors are currently weighing ProPetro (NYSE:PUMP) against the growth-oriented Expion360 (NASDAQ:XPON) to see which fits better.

ProPetro provides essential infrastructure services to oil and gas producers, while Expion360 focuses on the shift toward advanced lithium-ion battery storage. These companies operate at different ends of the energy and industrial spectrum, yet both are deeply tied to the evolving way the world powers its equipment and vehicles.

The case for ProPetro

ProPetro operates as a specialized oilfield services company that provides hydraulic fracturing, wireline, and cementing services primarily to producers in the Permian Basin. Its strategy focuses on providing high-pressure pumping and power generation services vital to extracting resources from some of the most productive oil fields in North America. Customer concentration like this adds a layer of risk to the business, as its top five customers accounted for about 68% of total revenue in late 2025. Major clients include ExxonMobil (NYSE:XOM), which contributed roughly 25% of revenue, and Occidental Petroleum (NYSE:OXY), which accounted for nearly 14%.

In FY 2025, revenue reached nearly $1.3 billion, down approximately 12% from the prior year. Despite lower revenue, the company achieved a net income of roughly $824,000, a notable recovery from the heavy losses reported in the previous fiscal year. This resulted in a net margin of nearly 0.1%, the percentage of revenue remaining after all operating and non-operating expenses are paid. The narrow margin reflects the highly competitive and capital-intensive nature of the oilfield services sector during periods of fluctuating energy demand.

As of its December 2025 balance sheet, the company maintains a debt-to-equity ratio of approximately 0.3x. This ratio measures total debt relative to shareholders’ equity, and a lower ratio suggests the company is not overly reliant on borrowed funds. The current ratio, which compares short-term assets to short-term liabilities, is roughly 0.2x, indicating a healthy ability to cover immediate obligations. For FY 2025, the company generated free cash flow of approximately $46 million. Free cash flow is the cash remaining from operations after paying for capital expenditures, such as equipment and machinery.

The case for Expion360

Expion360 specializes in the design and manufacture of lithium iron phosphate batteries, primarily serving the recreational vehicle and marine markets. The company aims to position itself as a leader among renewable energy stocks by providing high-density power storage for off-grid and residential applications. It relies on a few key relationships, including Camping World Holdings (NYSE:CWH) and Keystone Automotive, with four customers accounting for nearly 60% of its gross sales. Customer concentration like this adds a layer of risk to the business, especially since most sales occur on a purchase-order basis without long-term contracts.

In FY 2025, revenue reached nearly $9.7 million, representing a significant 72% increase over the prior year. While the top-line growth was strong, the company reported a net loss of approximately $6.2 million for the same period, down from more than $13 million the prior year. This indicates that the company is still in its early scaling phase, where spending on research and development exceeds its current sales. This performance is typical for smaller companies focused on capturing market share in rapidly evolving technology sectors.

As of its December 2025 balance sheet, Expion360 reported a debt-to-equity ratio of nearly 0.1x, indicating minimal reliance on long-term debt. Its current ratio is about the same. However, the company reported negative free cash flow of nearly $6.1 million for FY 2025. This negative figure, which represents cash from operations minus cash spent on equipment, indicates that the business is currently consuming cash to fund its growth and expansion.

Risk profile comparison

ProPetro is highly sensitive to the cyclical nature of the oil and gas industry, where changes in commodity prices can lead to rapid shifts in customer spending. The company faces geographic concentration risk because its operations are centered in the Permian Basin, making it vulnerable to regional regulatory changes or local infrastructure bottlenecks. Additionally, the company must manage the high costs of transitioning its fleet to lower-emission electric equipment. Failure to keep pace with these technological requirements could result in a competitive disadvantage against other service providers.

Expion360 faces risks due to its heavy dependence on Asian manufacturers and cell suppliers, as geopolitical tensions or trade policy changes could disrupt its supply chain. The company must compete with established battery giants like EnerSys (NYSE:ENS), which have significantly more capital and larger distribution networks. Furthermore, the business is exposed to potential product liability claims and long-term warranty costs associated with battery safety. Because sales are driven by discretionary spending in the RV and marine markets, any economic downturn could lead to a sharp decline in demand for its premium battery products.

Valuation comparison

ProPetro trades at a significant premium based on its future earnings estimates, while Expion360 offers a much lower entry price relative to its annual sales.

Sector benchmark uses the SPDR XLE sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy in 2026?

Renewable energy growth continues unabated, so the sector offers investors many promising investments. However, Expion360 is probably not one of them.

Expion360 does have a niche market in Li-ion batteries for recreational marine vehicles and other forms of personal transport, but even given its U.S. base, the small-scale lithium battery market remains remarkably competitive. Due to massive production in China, Li-ion batteries are somewhat commoditized, even with tariffs that should make Expion360 more competitive.

Regardless of how an investor feels about green batteries and Expion260 itself, the company is too small as a micro cap with a valuation of less than $6 million. Add in its poor 1-year return of almost negative 47% and its ghastly 3-year return of negative 99.89%, and this has the look of a stock to avoid.

Fossil fuel-focused ProPetro is the better choice here. The oilfield services business is improving domestically, thanks to the Iran war and the crude oil price rise it has brought. Ironically, the company is exposed to higher vehicle fuel prices with its own fleet, but it has been aggressively switching to natural gas-powered rigs that are cheaper to operate due to the discounted price of LNG for vehicles.

Overall, business hasn’t been great for ProPetro, with sales and margins decreasing in the first quarter of 2026. Still, while revenue is expected to be level to slightly decline in 2026 compared to 2025, ProPetro has a promising business in freestanding microgrids powered by oil and gas, called PROPWR. The growth industry for such freestanding microgrids? AI data centers.

Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends EnerSys. The Motley Fool recommends Camping World and Occidental Petroleum. The Motley Fool has a disclosure policy.