Analyzing Parker Drilling (PKD) and Its Rivals

Parker Drilling (NYSE: PKD) is one of 17 publicly-traded companies in the “Oil & Gas Drilling” industry, but how does it weigh in compared to its competitors? We will compare Parker Drilling to similar companies based on the strength of its analyst recommendations, valuation, dividends, risk, institutional ownership, profitability and earnings.

Institutional and Insider Ownership

65.5% of Parker Drilling shares are owned by institutional investors. Comparatively, 74.9% of shares of all “Oil & Gas Drilling” companies are owned by institutional investors. 3.6% of Parker Drilling shares are owned by insiders. Comparatively, 2.2% of shares of all “Oil & Gas Drilling” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Parker Drilling has a beta of 1.5, suggesting that its share price is 50% more volatile than the S&P 500. Comparatively, Parker Drilling’s competitors have a beta of 1.83, suggesting that their average share price is 83% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Parker Drilling and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Parker Drilling 0 2 3 0 2.60
Parker Drilling Competitors 510 1576 1278 59 2.26

Parker Drilling currently has a consensus price target of $3.75, suggesting a potential upside of 212.50%. As a group, “Oil & Gas Drilling” companies have a potential upside of 33.94%. Given Parker Drilling’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Parker Drilling is more favorable than its competitors.

Valuation & Earnings

This table compares Parker Drilling and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Parker Drilling $399.09 million $29.23 million -0.92
Parker Drilling Competitors $1.42 billion $539.80 million -6.12

Parker Drilling’s competitors have higher revenue and earnings than Parker Drilling. Parker Drilling is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Parker Drilling and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Parker Drilling -27.27% -34.86% -10.65%
Parker Drilling Competitors -15.13% -7.22% -2.12%

Summary

Parker Drilling competitors beat Parker Drilling on 8 of the 12 factors compared.

Parker Drilling Company Profile

Parker Drilling Company (Parker Drilling) is a provider of contract drilling, and drilling-related services and rental tools and services. The Company’s business consists of two business lines: drilling services and rental tools services. Its Rental Tools Services business includes U.S. Rental Tools and International Rental Tools segments, and its Drilling Services business includes its U.S. (Lower 48) Drilling, and International & Alaska Drilling segments. In its Drilling Services business, the Company drills oil and gas wells for customers in both the United States and international markets. In its Rental Tools Services business, the Company provides rental equipment and services to exploration and production (E&P) companies, drilling contractors and service companies on land and offshore in the United States and select international markets. As of December 31, 2016, the Company had operations in 20 countries.

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