Head to Head Contrast: ProPetro (NYSE:PUMP) versus Valaris (NYSE:VAL)

ProPetro (NYSE:PUMP) and Valaris (NYSE:VAL) are both energy companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, risk, valuation, institutional ownership, earnings and profitability.

Insider & Institutional Ownership

84.7% of ProPetro shares are held by institutional investors. Comparatively, 96.7% of Valaris shares are held by institutional investors. 1.5% of ProPetro shares are held by company insiders. Comparatively, 0.8% of Valaris shares 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.

Valuation and Earnings

This table compares ProPetro and Valaris”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ProPetro	$1.27 billion	0.74	$820,000.00	N/A	N/A
Valaris	$2.37 billion	2.97	$982.80 million	$13.39	7.58

Valaris has higher revenue and earnings than ProPetro.

Profitability

This table compares ProPetro and Valaris’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ProPetro	0.16%	0.21%	0.12%
Valaris	43.95%	9.25%	5.35%

Analyst Recommendations

This is a breakdown of recent ratings for ProPetro and Valaris, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ProPetro	1	3	8	1	2.69
Valaris	1	6	0	0	1.86

ProPetro currently has a consensus price target of $15.25, suggesting a potential upside of 98.44%. Valaris has a consensus price target of $68.50, suggesting a potential downside of 32.48%. Given ProPetro’s stronger consensus rating and higher probable upside, research analysts plainly believe ProPetro is more favorable than Valaris.

Risk and Volatility

ProPetro has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500. Comparatively, Valaris has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500.

Summary

Valaris beats ProPetro on 8 of the 13 factors compared between the two stocks.

About ProPetro

ProPetro Holding Corp. operates as an integrated oilfield services company. The company provides hydraulic fracturing, wireline, cementing, and other complementary oilfield completion services to upstream oil and gas companies in the Permian Basin. ProPetro Holding Corp. was founded in 2007 and is headquartered in Midland, Texas.

About Valaris

Valaris Limited, together with its subsidiaries, provides offshore contract drilling services Gulf of Mexico, South America, North Sea, the Middle East, Africa, and the Asia Pacific. The company operates through four segments: Floaters, Jackups, ARO, and Other. It owns an offshore drilling rig fleet, which include drillships, dynamically positioned semisubmersible rigs, moored semisubmersible rig, and jackup rigs. It serves international, government-owned, and independent oil and gas. Valaris Limited was founded in 1975 and is based in Hamilton, Bermuda.