Patterson-UTI Energy (PTEN) vs. Parker Drilling (PKD) Financial Comparison
Patterson-UTI Energy (NASDAQ: PTEN) and Parker Drilling (NYSE:PKD) are both oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.
This table compares Patterson-UTI Energy and Parker Drilling’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
Patterson-UTI Energy has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500. Comparatively, Parker Drilling has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500.
Valuation & Earnings
This table compares Patterson-UTI Energy and Parker Drilling’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Patterson-UTI Energy||$1.34 billion||2.99||$260.21 million||($1.97)||-9.60|
|Parker Drilling||$399.09 million||0.34||$29.23 million||($1.30)||-0.76|
Patterson-UTI Energy has higher revenue and earnings than Parker Drilling. Patterson-UTI Energy is trading at a lower price-to-earnings ratio than Parker Drilling, indicating that it is currently the more affordable of the two stocks.
Patterson-UTI Energy pays an annual dividend of $0.08 per share and has a dividend yield of 0.4%. Parker Drilling does not pay a dividend. Patterson-UTI Energy pays out -4.1% of its earnings in the form of a dividend.
This is a breakdown of recent ratings and price targets for Patterson-UTI Energy and Parker Drilling, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Patterson-UTI Energy presently has a consensus price target of $27.10, suggesting a potential upside of 43.23%. Parker Drilling has a consensus price target of $4.00, suggesting a potential upside of 307.33%. Given Parker Drilling’s higher possible upside, analysts clearly believe Parker Drilling is more favorable than Patterson-UTI Energy.
Institutional and Insider Ownership
98.7% of Patterson-UTI Energy shares are owned by institutional investors. Comparatively, 65.5% of Parker Drilling shares are owned by institutional investors. 4.6% of Patterson-UTI Energy shares are owned by company insiders. Comparatively, 3.6% of Parker Drilling shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Patterson-UTI Energy beats Parker Drilling on 12 of the 15 factors compared between the two stocks.
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.
Parker Drilling Company Profile
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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