Key Energy Services (NYSE: KEG) and Vantage Drilling (OTCMKTS:VTGDF) are both small-cap oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.
This table compares Key Energy Services and Vantage Drilling’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Key Energy Services||N/A||N/A||N/A|
Risk and Volatility
Key Energy Services has a beta of 2.39, suggesting that its stock price is 139% more volatile than the S&P 500. Comparatively, Vantage Drilling has a beta of 3.38, suggesting that its stock price is 238% more volatile than the S&P 500.
This is a summary of recent ratings and target prices for Key Energy Services and Vantage Drilling, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Key Energy Services||0||3||2||0||2.40|
Key Energy Services currently has a consensus price target of $15.00, suggesting a potential downside of 0.20%. Given Key Energy Services’ higher possible upside, equities research analysts clearly believe Key Energy Services is more favorable than Vantage Drilling.
Institutional and Insider Ownership
56.1% of Key Energy Services shares are held by institutional investors. 4.0% of Key Energy Services shares are held by company insiders. Comparatively, 7.5% of Vantage Drilling shares are held 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.
Earnings & Valuation
This table compares Key Energy Services and Vantage Drilling’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Key Energy Services||$436.17 million||0.70||-$127.25 million||($6.29)||-2.39|
|Vantage Drilling||$212.85 million||0.02||-$149.78 million||N/A||N/A|
Key Energy Services has higher revenue and earnings than Vantage Drilling.
Key Energy Services beats Vantage Drilling on 9 of the 11 factors compared between the two stocks.
About Key Energy Services
Key Energy Services, Inc. operates as an onshore rig-based well servicing contractor in the United States. The company's U.S. Rig Services segment is involved in the completion of newly drilled wells; workover and recompletion of existing oil and natural gas wells; well maintenance activities; and plugging and abandonment of wells at the end of their lives, as well as provision of specialty drilling services to oil and natural gas producers. Its Fluid Management Services segment offers transportation and well-site storage services for fluids utilized in drilling, completions, workover, and maintenance activities; and disposal services for fluids produced subsequent to well completion. It also operates a fleet of hot oilers used to clear soluble restrictions in a wellbore. The company's Coiled Tubing Services segment offers services for wellbore clean-outs, nitrogen jet lifts, through-tubing fishing, and formation stimulations; mills temporary isolation plugs that separate frac zones; and other pre- and post-hydraulic fracturing well preparation services. Its Fishing and Rental Services segment provides fishing services that involve recovering lost or stuck equipment in the wellbore utilizing fishing tools; and rents drill pipes, tubulars, handling tools, pressure-control equipment, pumps, power swivels, reversing units, and foam air units, as well as frac stack equipment used to support hydraulic fracturing operations and the associated flowback of frac fluids, proppants, oil, and natural gas. The company was formerly known as Key Energy Group, Inc. and changed its name to Key Energy Services, Inc. in December 1998. Key Energy Services, Inc. was founded in 1977 and is based in Houston, Texas.
About Vantage Drilling
Vantage Drilling Company, through its subsidiaries, provides offshore contract drilling services in the United States and internationally. It offers drilling units, related equipment, and work crews under contract to drill oil and natural gas wells. The company also provides construction supervision and operations management services for drilling units owned by others. As of March 6, 2015, it owned a fleet of seven drilling units, including three ultra-deepwater drillships and four ultra-premium jackup rigs. The company primarily serves multinational oil and natural gas companies, government owned oil and natural gas companies, and independent oil and natural gas producers. Vantage Drilling Company was founded in 2007 and is based in Houston, Texas.
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