Pioneer Energy Services Corp. (NYSE: PES) and Patterson-UTI Energy (NASDAQ:PTEN) are both oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, risk, profitability and earnings.
This is a summary of current ratings for Pioneer Energy Services Corp. and Patterson-UTI Energy, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Pioneer Energy Services Corp.||0||6||5||0||2.45|
Pioneer Energy Services Corp. currently has a consensus price target of $5.25, indicating a potential upside of 138.64%. Patterson-UTI Energy has a consensus price target of $27.10, indicating a potential upside of 32.00%. Given Pioneer Energy Services Corp.’s higher possible upside, equities analysts plainly believe Pioneer Energy Services Corp. is more favorable than Patterson-UTI Energy.
Patterson-UTI Energy pays an annual dividend of $0.08 per share and has a dividend yield of 0.4%. Pioneer Energy Services Corp. does not pay a dividend. Patterson-UTI Energy pays out -4.1% of its earnings in the form of a dividend.
Institutional & Insider Ownership
74.0% of Pioneer Energy Services Corp. shares are held by institutional investors. Comparatively, 98.6% of Patterson-UTI Energy shares are held by institutional investors. 6.1% of Pioneer Energy Services Corp. shares are held by insiders. Comparatively, 4.6% of Patterson-UTI Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Pioneer Energy Services Corp. and Patterson-UTI Energy’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Pioneer Energy Services Corp.||$342.72 million||0.50||$20.01 million||($1.65)||-1.33|
|Patterson-UTI Energy||$1.34 billion||3.24||$260.21 million||($1.97)||-10.42|
Patterson-UTI Energy has higher revenue and earnings than Pioneer Energy Services Corp.. Patterson-UTI Energy is trading at a lower price-to-earnings ratio than Pioneer Energy Services Corp., indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Pioneer Energy Services Corp. has a beta of 3.03, indicating that its stock price is 203% more volatile than the S&P 500. Comparatively, Patterson-UTI Energy has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500.
This table compares Pioneer Energy Services Corp. and Patterson-UTI Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Pioneer Energy Services Corp.||-33.86%||-28.63%||-10.36%|
Patterson-UTI Energy beats Pioneer Energy Services Corp. on 11 of the 15 factors compared between the two stocks.
About Pioneer Energy Services Corp.
Pioneer Energy Services Corp. provides land-based drilling services and production services to a group of independent oil and gas exploration and production companies in the United States and internationally in Colombia. The Company operates through two segments, which include drilling services segment and production services segment. It also provides two of its services (coiled tubing and wireline services) offshore in the Gulf of Mexico. Its drilling services segment provides contract land drilling services to a group of exploration and production companies through the Company’s four drilling divisions in the United States, and internationally in Colombia. Its production services segment provides a range of services to a group of exploration and production companies, with its operations concentrated in the various United States onshore oil and gas producing regions in the Mid-Continent and Rocky Mountain states and in the Gulf Coast.
About Patterson-UTI Energy
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.
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