Pacific Drilling SA (NYSE: PACD) is one of 17 public companies in the “Oil & Gas Drilling” industry, but how does it contrast to its competitors? We will compare Pacific Drilling SA to similar companies based on the strength of its valuation, analyst recommendations, institutional ownership, earnings, risk, dividends and profitability.

Institutional and Insider Ownership

6.4% of Pacific Drilling SA shares are owned by institutional investors. Comparatively, 74.9% of shares of all “Oil & Gas Drilling” companies are owned by institutional investors. 2.2% of shares of all “Oil & Gas Drilling” companies are owned by 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.

Profitability

This table compares Pacific Drilling SA and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pacific Drilling SA -94.63% -15.30% -6.81%
Pacific Drilling SA Competitors -18.42% -8.00% -2.43%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Pacific Drilling SA and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pacific Drilling SA 0 0 0 0 N/A
Pacific Drilling SA Competitors 510 1579 1282 59 2.26

As a group, “Oil & Gas Drilling” companies have a potential upside of 23.66%. Given Pacific Drilling SA’s competitors higher probable upside, analysts plainly believe Pacific Drilling SA has less favorable growth aspects than its competitors.

Volatility and Risk

Pacific Drilling SA has a beta of 2.65, suggesting that its stock price is 165% more volatile than the S&P 500. Comparatively, Pacific Drilling SA’s competitors have a beta of 1.83, suggesting that their average stock price is 83% more volatile than the S&P 500.

Earnings and Valuation

This table compares Pacific Drilling SA and its competitors revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Pacific Drilling SA $532.97 million $195.79 million -0.03
Pacific Drilling SA Competitors $1.42 billion $540.19 million -6.84

Pacific Drilling SA’s competitors have higher revenue and earnings than Pacific Drilling SA. Pacific Drilling SA is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Pacific Drilling SA competitors beat Pacific Drilling SA on 8 of the 9 factors compared.

Pacific Drilling SA Company Profile

Pacific Drilling S.A. is an international offshore drilling contractor. The Company provides offshore drilling services to the oil and natural gas industry through the use of high-specification rigs. The Company’s primary business is to contract its high-specification rigs, related equipment and work crews, primarily on a day rate basis, to drill wells for its clients. The Company is engaged in drillships segment. The Company focuses on the high-specification segment of the floating rig market. The Company considers high-specification requirements to include rigs in water depths of approximately 7,500 feet or projects requiring advanced operating capabilities, such as hook-loads (>800 tons), accommodations (over 200 beds), mud storage and pumping capacity, and deck-load and space capabilities. The Company’s contract drillships operate in the deepwater regions of the United States, Gulf of Mexico and Nigeria.

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