ProPetro (NYSE:PUMP – Get Free Report) and Nabors Industries (NYSE:NBR – Get Free Report) are both small-cap energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, risk, dividends, institutional ownership and profitability.
Analyst Ratings
This is a summary of recent ratings for ProPetro and Nabors Industries, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ProPetro | 1 | 2 | 8 | 0 | 2.64 |
| Nabors Industries | 0 | 6 | 2 | 0 | 2.25 |
ProPetro presently has a consensus price target of $16.50, suggesting a potential upside of 55.34%. Nabors Industries has a consensus price target of $102.57, suggesting a potential upside of 16.83%. Given ProPetro’s stronger consensus rating and higher possible upside, analysts plainly believe ProPetro is more favorable than Nabors Industries.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ProPetro | $1.27 billion | 1.03 | $820,000.00 | ($0.11) | -96.56 |
| Nabors Industries | $3.21 billion | 0.44 | $286.62 million | $13.44 | 6.53 |
Nabors Industries has higher revenue and earnings than ProPetro. ProPetro is trading at a lower price-to-earnings ratio than Nabors Industries, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
ProPetro has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500. Comparatively, Nabors Industries has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500.
Profitability
This table compares ProPetro and Nabors Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ProPetro | -1.15% | -1.49% | -0.89% |
| Nabors Industries | 7.64% | -7.06% | -1.45% |
Institutional and Insider Ownership
84.7% of ProPetro shares are owned by institutional investors. Comparatively, 81.9% of Nabors Industries shares are owned by institutional investors. 1.5% of ProPetro shares are owned by insiders. Comparatively, 5.3% of Nabors Industries shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
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 Nabors Industries
Nabors Industries Ltd. provides drilling and drilling-related services for land-based and offshore oil and natural gas wells in the United States and internationally. The company operates through four segments: U.S. Drilling, International Drilling, Drilling Solutions, and Rig Technologies. It provides tubular running services, including casing and tubing running, and torque monitoring; managed pressure drilling services; and drilling-bit steering systems and rig instrumentation software. The company also offers drilling systems comprising ROCKit, a directional steering control system; SmartNAV, a collaborative guidance and advisory platform; SmartSLIDE, a directional steering control system; and RigCLOUD, a digital infrastructure to integrate applications to deliver real-time insight into operations across the rig fleet. In addition, it operates a fleet of land-based drilling rigs and marketed platforms rigs; manufactures and sells top drives, catwalks, wrenches, drawworks, and other drilling related equipment, such as robotic systems and downhole tools; and provides aftermarket sales and services for the installed base of its equipment. Nabors Industries Ltd. was founded in 1952 and is based in Hamilton, Bermuda.
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