Tidewater (NYSE:TDW – Get Free Report) and Drilling Tools International (NASDAQ:DTI – Get Free Report) 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.
Risk and Volatility
Tidewater has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500. Comparatively, Drilling Tools International has a beta of -0.56, meaning that its stock price is 156% less volatile than the S&P 500.
Valuation and Earnings
This table compares Tidewater and Drilling Tools International”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tidewater | $1.35 billion | 2.58 | $334.66 million | $4.94 | 14.20 |
| Drilling Tools International | $159.63 million | 0.32 | -$3.76 million | ($0.09) | -15.89 |
Tidewater has higher revenue and earnings than Drilling Tools International. Drilling Tools International is trading at a lower price-to-earnings ratio than Tidewater, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
95.1% of Tidewater shares are held by institutional investors. Comparatively, 2.8% of Drilling Tools International shares are held by institutional investors. 5.9% of Tidewater shares are held by company insiders. Comparatively, 17.1% of Drilling Tools International 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.
Profitability
This table compares Tidewater and Drilling Tools International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Tidewater | 18.34% | 5.36% | 3.05% |
| Drilling Tools International | -1.97% | 0.58% | 0.31% |
Analyst Recommendations
This is a breakdown of recent ratings for Tidewater and Drilling Tools International, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tidewater | 0 | 5 | 3 | 1 | 2.56 |
| Drilling Tools International | 1 | 2 | 0 | 0 | 1.67 |
Tidewater currently has a consensus price target of $98.25, suggesting a potential upside of 40.10%. Drilling Tools International has a consensus price target of $2.80, suggesting a potential upside of 95.80%. Given Drilling Tools International’s higher probable upside, analysts plainly believe Drilling Tools International is more favorable than Tidewater.
Summary
Tidewater beats Drilling Tools International on 13 of the 15 factors compared between the two stocks.
About Tidewater
Tidewater Inc., together with its subsidiaries, provides offshore support vessels and marine support services to the offshore energy industry through the operation of a fleet of marine service vessels worldwide. It provides services in support of offshore oil and gas exploration, field development, and production, as well as windfarm development and maintenance, including towing of and anchor handling for mobile offshore drilling units; transporting supplies and personnel necessary to sustain drilling, workover, and production activities; offshore construction, and seismic and subsea support; geotechnical survey support for windfarm construction; and various specialized services, such as pipe and cable laying. The company operates anchor handling towing supply vessels, platform supply vessels, crew boats, utility vessels, and offshore tugs. The company serves integrated and independent oil and gas exploration, field development, and production companies; mid-sized and smaller independent exploration and production companies; foreign government-owned or government-controlled organizations, and other related companies; offshore drilling contractors; and other companies, such as offshore construction, windfarm development, diving, and well stimulation companies. Tidewater Inc. was incorporated in 1956 and is headquartered in Houston, Texas.
About Drilling Tools International
Drilling Tools International Corporation provides oilfield equipment and services to oil and natural gas sectors in North America, Europe, and the Middle East. It offers downhole tool rentals, machining, and inspection services to support the global drilling and wellbore construction industry. The company also provides products are bottom hole assembly components, such as stabilizers, subs, non-magnetic and steel drill collars, hole openers, and roller reamers, as well as drill pipe and drill pipe accessories; ancillary equipment and handling tools to support its rental platform, including float valves, ring gauges, tool baskets, lift bail, lift subs, mud magnets, elevators, bracket and bail assemblies, slips, tongs, stabbing guides and safety clamps; and blowout preventers, and pressure control accessory equipment. In addition, it offers tool rental services, which consists of rental, inspection, machining, and repair services; rents downhole drilling tools used in horizontal and directional drilling of oil and natural gas; rents kellys, pip joints, work strings; maintains a fleet of rental equipment consisting of drill collars, stabilizers, crossover subs, wellbore conditioning tools, drill pipe, hevi-wate drill pipe, and tubing; rents surface control equipment, such as blowout preventers and handling tools; and provides downhole products for producing wells. Drilling Tools International Corporation is headquartered in Houston, Texas.
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