Critical Comparison: Parker Drilling (PKD) versus Its Peers
Parker Drilling (NYSE: PKD) is one of 17 public companies in the “Oil & Gas Drilling” industry, but how does it weigh in compared to its rivals? We will compare Parker Drilling to similar businesses based on the strength of its earnings, profitability, valuation, analyst recommendations, institutional ownership, risk and dividends.
Volatility & Risk
Parker Drilling has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500. Comparatively, Parker Drilling’s rivals have a beta of 1.83, meaning that their average share price is 83% more volatile than the S&P 500.
Institutional & Insider Ownership
65.5% of Parker Drilling shares are owned by institutional investors. Comparatively, 74.9% of shares of all “Oil & Gas Drilling” companies are owned by institutional investors. 3.6% of Parker Drilling shares are owned by company insiders. Comparatively, 2.2% of shares of all “Oil & Gas Drilling” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Parker Drilling and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Parker Drilling Competitors||-15.95%||-7.74%||-2.32%|
Valuation and Earnings
This table compares Parker Drilling and its rivals top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Parker Drilling||$399.09 million||$29.23 million||-0.92|
|Parker Drilling Competitors||$1.42 billion||$539.80 million||-5.92|
Parker Drilling’s rivals have higher revenue and earnings than Parker Drilling. Parker Drilling is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
This is a summary of recent ratings for Parker Drilling and its rivals, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Parker Drilling Competitors||510||1573||1276||59||2.26|
Parker Drilling presently has a consensus target price of $3.75, indicating a potential upside of 212.50%. As a group, “Oil & Gas Drilling” companies have a potential upside of 35.91%. Given Parker Drilling’s stronger consensus rating and higher possible upside, equities analysts clearly believe Parker Drilling is more favorable than its rivals.
Parker Drilling rivals beat Parker Drilling on 8 of the 12 factors compared.
About Parker Drilling
Parker Drilling Company (Parker Drilling) is a provider of contract drilling, and drilling-related services and rental tools and services. The Company’s business consists of two business lines: drilling services and rental tools services. Its Rental Tools Services business includes U.S. Rental Tools and International Rental Tools segments, and its Drilling Services business includes its U.S. (Lower 48) Drilling, and International & Alaska Drilling segments. In its Drilling Services business, the Company drills oil and gas wells for customers in both the United States and international markets. In its Rental Tools Services business, the Company provides rental equipment and services to exploration and production (E&P) companies, drilling contractors and service companies on land and offshore in the United States and select international markets. As of December 31, 2016, the Company had operations in 20 countries.
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