Patterson-UTI Energy (NASDAQ:PTEN – Get Free Report) and Ranger Energy Services (NYSE:RNGR – Get Free Report) are both energy companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.
Valuation & Earnings
This table compares Patterson-UTI Energy and Ranger Energy Services”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Patterson-UTI Energy | $4.83 billion | 0.78 | -$93.64 million | ($0.06) | -165.33 |
| Ranger Energy Services | $546.90 million | 0.54 | $12.30 million | $0.60 | 20.86 |
Ranger Energy Services has lower revenue, but higher earnings than Patterson-UTI Energy. Patterson-UTI Energy is trading at a lower price-to-earnings ratio than Ranger Energy Services, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Patterson-UTI Energy and Ranger Energy Services, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Patterson-UTI Energy | 0 | 6 | 9 | 0 | 2.60 |
| Ranger Energy Services | 0 | 2 | 1 | 0 | 2.33 |
Patterson-UTI Energy presently has a consensus price target of $14.09, indicating a potential upside of 42.05%. Ranger Energy Services has a consensus price target of $20.00, indicating a potential upside of 59.81%. Given Ranger Energy Services’ higher probable upside, analysts clearly believe Ranger Energy Services is more favorable than Patterson-UTI Energy.
Insider and Institutional Ownership
97.9% of Patterson-UTI Energy shares are held by institutional investors. Comparatively, 68.1% of Ranger Energy Services shares are held by institutional investors. 2.2% of Patterson-UTI Energy shares are held by company insiders. Comparatively, 2.8% of Ranger Energy Services shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Patterson-UTI Energy and Ranger Energy Services’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Patterson-UTI Energy | -0.52% | -0.58% | -0.34% |
| Ranger Energy Services | 2.36% | 4.87% | 3.33% |
Volatility & Risk
Patterson-UTI Energy has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500. Comparatively, Ranger Energy Services has a beta of 0.25, indicating that its stock price is 75% less volatile than the S&P 500.
Dividends
Patterson-UTI Energy pays an annual dividend of $0.40 per share and has a dividend yield of 4.0%. Ranger Energy Services pays an annual dividend of $0.24 per share and has a dividend yield of 1.9%. Patterson-UTI Energy pays out -666.7% of its earnings in the form of a dividend. Ranger Energy Services pays out 40.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Ranger Energy Services has raised its dividend for 2 consecutive years. Patterson-UTI Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Ranger Energy Services beats Patterson-UTI Energy on 9 of the 17 factors compared between the two stocks.
About Patterson-UTI Energy
Patterson-UTI Energy, Inc., through its subsidiaries, engages in the provision of contract drilling services to oil and natural gas operators in the United States and internationally. It operates through three segments: Drilling Services, Completion Services, and Drilling Products. The Contract Drilling Services segment provides contract and directional drilling services in onshore oil and natural gas basins, as well as engages in the service and re-certification of equipment for drilling contractors, and provision of electrical controls and automation to the energy, marine and mining industries. The Completion Services segment offers services for hydraulic fracturing, wireline and pumping, completion support, and cementing; and involved in the power solutions natural gas fueling, and logistics and storage businesses. The Drilling Products segment manufactures and distributes drill bits for energy and mining markets. It also provides software and services, such as MWD Survey FDIR, a data analytics technology to analyze MWD survey data in real-time and identify the position of a well; HiFi Nav, which enhances FDIR by targeting improved vertical placement of the directional well within the reservoir; HiFi Guidance, utilizes trajectory optimization to determine optimal steering recommendations and placement within the reservoir; and rents oilfield tools. The company was founded in 1978 and is headquartered in Houston, Texas.
About Ranger Energy Services
Ranger Energy Services, Inc. provides onshore high specification well service rigs, wireline services, and complementary services to exploration and production companies in the United States. It operates through three segments: High Specification Rigs, Wireline Services, and Processing Solutions and Ancillary Services. The High Specification Rigs segment offers well service rigs and complementary equipment and services to facilitate operations throughout the lifecycle of a well; and well maintenance services. This segment also has a fleet of 402 well service rigs. The Wireline Services segment provides wireline production and intervention services to provide information to identify and resolve well production problems through cased hole logging, perforating, mechanical, and pipe recovery services; wireline completion services that are used primarily for pump down perforating operations to create perforations or entry holes through the production casing; and pumping services. This segment also has a fleet of 66 wireline units and 29 high-pressure pump trucks. The Processing Solutions and Ancillary Services segment rents well service-related equipment consisting of fluid pumps, power swivels, well control packages, hydraulic catwalks, frac tanks, pipe racks, and pipe handling tools; and coiled tubing, decommissioning, and snubbing services, as well as provides proprietary and modular equipment for the processing of natural gas streams. This segment also engages in the rental, installation, commissioning, start up, operation, and maintenance of mechanical refrigeration units, nitrogen gas liquid stabilizer units, nitrogen gas liquid storage units, and related equipment. Ranger Energy Services, Inc. was incorporated in 2017 and is headquartered in Houston, Texas.
Receive News & Ratings for Patterson-UTI Energy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Patterson-UTI Energy and related companies with MarketBeat.com's FREE daily email newsletter.
