Western Energy Services (OTCMKTS:WEEEF) and Patterson-UTI Energy (NASDAQ:PTEN) are both oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.

Profitability

This table compares Western Energy Services and Patterson-UTI Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Western Energy Services -17.35% -11.17% -6.02%
Patterson-UTI Energy -9.66% -1.98% -1.28%

Dividends

Patterson-UTI Energy pays an annual dividend of $0.16 per share and has a dividend yield of 1.1%. Western Energy Services does not pay a dividend. Patterson-UTI Energy pays out -47.1% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Western Energy Services and Patterson-UTI Energy’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Western Energy Services $182.41 million 0.14 -$31.75 million N/A N/A
Patterson-UTI Energy $3.33 billion 0.92 -$321.42 million ($0.34) -42.03

Western Energy Services has higher earnings, but lower revenue than Patterson-UTI Energy.

Analyst Ratings

This is a summary of current ratings and target prices for Western Energy Services and Patterson-UTI Energy, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Western Energy Services 0 0 0 0 N/A
Patterson-UTI Energy 0 6 13 0 2.68

Patterson-UTI Energy has a consensus price target of $20.44, indicating a potential upside of 42.62%. Given Patterson-UTI Energy’s higher probable upside, analysts clearly believe Patterson-UTI Energy is more favorable than Western Energy Services.

Risk & Volatility

Western Energy Services has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500. Comparatively, Patterson-UTI Energy has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500.

Institutional and Insider Ownership

0.1% of Western Energy Services shares are owned by institutional investors. Comparatively, 97.0% of Patterson-UTI Energy shares are owned by institutional investors. 3.7% 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 company will outperform the market over the long term.

Summary

Patterson-UTI Energy beats Western Energy Services on 12 of the 13 factors compared between the two stocks.

About Western Energy Services

Western Energy Services Corp. operates as an oilfield service company in Canada and the United States. The company operates through Contract Drilling and Production Services segments. The Contract Drilling segment operates drilling rigs and related ancillary equipment. It operates a fleet of 56 drilling rigs, including 50 in Canada and 6 in the United States. The Production Services segment offers well servicing rigs and related equipment. This segment also provides oilfield rental equipment for hydraulic fracturing services, well completions and production work, and coil tubing and drilling services. This segment operates a fleet of 66 service rigs, including 32 singles, 26 doubles, and 8 slant service rigs. The company serves crude oil and natural gas exploration and production companies, and other oilfield service companies. Western Energy Services Corp. is headquartered in Calgary, Canada.

About Patterson-UTI Energy

Patterson-UTI Energy, Inc., through its subsidiaries, provides onshore contract drilling services to oil and natural gas operators in the United States and Canada. It operates through three segments: Contract Drilling Services, Pressure Pumping Services, and Directional Drilling Services. The Contract Drilling segment markets its contract drilling services primarily in west Texas and southeastern New Mexico, north central and east Texas, northern Louisiana, Colorado, Wyoming, North Dakota, south Texas, western Oklahoma, Pennsylvania, Ohio, West Virginia, and western Canada. As of December 31, 2018, this segment had a drilling fleet of 252 marketable land-based drilling rigs. The Pressure Pumping segment offers pressure pumping services that consist of well stimulation and cementing for the completion of new wells and remedial work on existing wells, as well as hydraulic fracturing, cementing, and acid pumping services in Texas, the Mid-Continent, and the Appalachian region. The Directional Drilling Services segment provides a suite of directional drilling services, including directional drilling, downhole performance motors, motor rentals, directional surveying, measurement-while-drilling, wireline steering tools, and services that enhance the accuracy of horizontal wellbore placement. Patterson-UTI Energy, Inc. also manufactures and sells pipe handling components and related technology to drilling contractors, as well as provides electrical controls and automation to the energy, marine, and mining industries in North America and other markets; and owns and invests in oil and natural gas assets as a non-operating working interest owner located principally in Texas and New Mexico. Patterson-UTI Energy, Inc. was founded in 1978 and is headquartered in Houston, Texas.

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