Nabors Industries (NBR) vs. Patterson-UTI Energy (PTEN) Head-To-Head Comparison
Nabors Industries (NYSE: NBR) and Patterson-UTI Energy (NASDAQ:PTEN) are both oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, profitability, dividends, analyst recommendations, earnings, institutional ownership and valuation.
This is a summary of current ratings and target prices for Nabors Industries and Patterson-UTI Energy, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Nabors Industries presently has a consensus price target of $13.32, indicating a potential upside of 94.43%. Patterson-UTI Energy has a consensus price target of $27.41, indicating a potential upside of 53.47%. Given Nabors Industries’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Nabors Industries is more favorable than Patterson-UTI Energy.
Valuation and Earnings
This table compares Nabors Industries and Patterson-UTI Energy’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Nabors Industries||$2.25 billion||0.87||$535.84 million||($2.55)||-2.69|
|Patterson-UTI Energy||$1.34 billion||2.82||$260.21 million||($1.97)||-9.07|
Nabors Industries has higher revenue and earnings than Patterson-UTI Energy. Patterson-UTI Energy is trading at a lower price-to-earnings ratio than Nabors Industries, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Nabors Industries has a beta of 1.57, indicating that its share price is 57% more volatile than the S&P 500. Comparatively, Patterson-UTI Energy has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500.
This table compares Nabors Industries and Patterson-UTI Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
95.6% of Nabors Industries shares are owned by institutional investors. Comparatively, 98.6% of Patterson-UTI Energy shares are owned by institutional investors. 4.1% of Nabors Industries shares are owned by company insiders. Comparatively, 4.6% of Patterson-UTI Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Nabors Industries pays an annual dividend of $0.24 per share and has a dividend yield of 3.5%. Patterson-UTI Energy pays an annual dividend of $0.08 per share and has a dividend yield of 0.4%. Nabors Industries pays out -9.4% of its earnings in the form of a dividend. Patterson-UTI Energy pays out -4.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Nabors Industries has raised its dividend for 3 consecutive years. Nabors Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Nabors Industries beats Patterson-UTI Energy on 10 of the 16 factors compared between the two stocks.
Nabors Industries Company Profile
Nabors Industries Ltd. owns and operates a land-based drilling rig fleet. The Company is a provider of offshore platform drilling rigs in the United States and multiple international markets. The Company conducts its Drilling & Rig Services business through four segments: U.S. Drilling, Canada Drilling, International Drilling and Rig Services. The Company provides wellbore placement services, drilling software and performance tools, drilling equipment and various technologies throughout the oil and gas markets. The Company’s Drilling & Rig Services business comprises land-based and offshore drilling rig operations and other rig services, consisting of equipment manufacturing, rig instrumentation and optimization software. The Company is a provider of directional drilling and measurement while drilling (MWD) systems and services. The Company also provides drilling technology and equipment, and well-site services.
Patterson-UTI Energy Company Profile
Patterson-UTI Energy, Inc. is an oilfield services company. The Company owns and operates a fleet of land-based drilling rigs and a fleet of pressure pumping equipment in the United States. The Company’s segments include Contract Drilling, Pressure Pumping and Other operations. The Contract Drilling segment markets its contract drilling services to independent and other oil and natural gas operators. As of December 31, 2016, the Company had 202 marketed land-based drilling rigs. The Pressure Pumping segment provides pressure pumping services to oil and natural gas operators primarily in Texas (Southwest Region) and the Appalachian region (Northeast Region). The Other operations segment includes the Company’s pipe handling components and related technology business, the oil and natural gas working interests and the Middle East/North Africa business. In addition, the Company owns and invests in oil and natural gas assets as a non-operating working interest owner in Texas and New Mexico.
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