Based on the aggregated intelligence of 125,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oilfield services provider Dawson Geophysical (NASDAQ:DWSN) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks woefully lag the market average.

With that in mind, let's take a closer look at Dawson's business, and see what CAPS investors are saying about the stock right now.

Dawson facts

Headquarters (founded)

Midland, Texas (1952)

Market Cap

$125.25 million

Industry

Oil and Gas Equipment and Services

TTM Revenue

$324.93 million

Management

Founder/Chairman L. Decker Dawson

CEO Stephen Jumper

Return on Equity (average, last three years)

18.5%

Competitors

OMNI Energy Services (NASDAQ:OMNI),

TGC Industries (NASDAQ:TGE)

CAPS members bullish on DWSN also bullish on:

Apple (NASDAQ:AAPL),

Chesapeake Energy (NYSE:CHK)

CAPS members bearish on DWSN also bearish on:

Monsanto (NYSE:MON),

Microsoft (NASDAQ:MSFT)

Sources: Capital IQ (a division of Standard & Poor's), and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, 96% of the 484 All-Star members who have rated Dawson believe the stock will outperform the S&P 500 going forward. These bulls include Tracksters and TMFselzhanik, both of whom are ranked in the top 15% of our community.

Two weeks ago, Tracksters wrote that Dawson "is down because the oil industry is down. Did not mean that the oil companies are going to stop drilling. Solid company with no debt."

In a pitch from two weeks earlier, TMFselzhanik breaks down the stock's bargain valuation (which is even cheaper today) in great detail:

The market price seems ridiculously low to me. Start with the $16.70 per share they are trading around right now. Subtract out their current assets and liabilities (their checkbook balance, basically), and we get $10.06. Take their property (seismic equipment, etc), cut its book value in half (likely crazy, but let's try to think like the market here), subtract that out, and we get $0.61 per share. Subtracting the full book value of the property, and that's ($8.84) -- that's right, negative.

Selling this stock is like saying the guys who just pulled in $1.21 per share in profit -- after depreciation and taxes -- in the last quarter (in these terrible, Great-Depression-like times, mind you) are somehow subtracting $8.84 per share from the value of the property they use. ....

 The analysts project $4.05 for 2009. $16.70 for a company with no debt, $23.86 on the books, making over $4 a year? I'll buy that.

What do you think about Dawson, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 125,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Dawson is a recommendation of Motley Fool Hidden Gems. Apple is a Stock Advisor pick. Chesapeake Energy and Microsoft are selections of Inside Value. The Fool owns shares of Dawson Geophysical. The Fool's disclosure policy always gets a perfect score.