Comparing Helmerich & Payne (HP) & The Competition
Helmerich & Payne (NYSE: HP) is one of 17 publicly-traded companies in the “Oil & Gas Drilling” industry, but how does it contrast to its peers? We will compare Helmerich & Payne to similar businesses based on the strength of its analyst recommendations, valuation, earnings, institutional ownership, dividends, profitability and risk.
Institutional and Insider Ownership
74.9% of shares of all “Oil & Gas Drilling” companies are held by institutional investors. 4.2% of Helmerich & Payne shares are held by company insiders. Comparatively, 2.2% of shares of all “Oil & Gas Drilling” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Helmerich & Payne and its peers gross revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Helmerich & Payne||$1.60 billion||$373.98 million||-29.38|
|Helmerich & Payne Competitors||$1.42 billion||$539.80 million||-6.12|
Helmerich & Payne has higher revenue, but lower earnings than its peers. Helmerich & Payne is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
This table compares Helmerich & Payne and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Helmerich & Payne||-11.19%||-3.37%||-2.24%|
|Helmerich & Payne Competitors||-15.95%||-7.74%||-2.32%|
Risk & Volatility
Helmerich & Payne has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500. Comparatively, Helmerich & Payne’s peers have a beta of 1.83, indicating that their average stock price is 83% more volatile than the S&P 500.
Helmerich & Payne pays an annual dividend of $2.80 per share and has a dividend yield of 5.7%. Helmerich & Payne pays out -167.7% of its earnings in the form of a dividend. As a group, “Oil & Gas Drilling” companies pay a dividend yield of 4.7% and pay out -116.7% of their earnings in the form of a dividend. Helmerich & Payne has raised its dividend for 44 consecutive years. Helmerich & Payne is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.
This is a summary of current ratings and recommmendations for Helmerich & Payne and its peers, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Helmerich & Payne||7||11||4||0||1.86|
|Helmerich & Payne Competitors||510||1576||1278||59||2.26|
Helmerich & Payne presently has a consensus target price of $56.37, suggesting a potential upside of 14.90%. As a group, “Oil & Gas Drilling” companies have a potential upside of 44.09%. Given Helmerich & Payne’s peers stronger consensus rating and higher possible upside, analysts clearly believe Helmerich & Payne has less favorable growth aspects than its peers.
About Helmerich & Payne
Helmerich & Payne, Inc. is engaged in contract drilling of oil and gas wells for others. The Company operates in the contract drilling industry. The Company’s contract drilling business consists of three segments: U.S. Land, Offshore and International Land. The Company is also engaged in the ownership, development and operation of commercial real estate and the research and development of rotary steerable technology. Its real estate investments are located within Tulsa, Oklahoma, and include a shopping center containing approximately 441,000 leasable square feet, multi-tenant industrial warehouse properties containing approximately one million leasable square feet and approximately 210 acres of undeveloped real estate. The Company provides drilling rigs, equipment, personnel and camps on a contract basis. The Company’s subsidiaries include Helmerich & Payne International Drilling Co. and Helmerich & Payne de Venezuela, C.A.
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