Patterson-UTI Energy (NASDAQ: PTEN) is one of 17 publicly-traded companies in the “Oil & Gas Drilling” industry, but how does it compare to its rivals? We will compare Patterson-UTI Energy to similar businesses based on the strength of its profitability, institutional ownership, earnings, dividends, valuation, risk and analyst recommendations.
Institutional and Insider Ownership
98.4% of Patterson-UTI Energy shares are held by institutional investors. Comparatively, 74.9% of shares of all “Oil & Gas Drilling” companies are held by institutional investors. 4.6% of Patterson-UTI Energy shares are held by company insiders. Comparatively, 2.2% of shares of all “Oil & Gas Drilling” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares Patterson-UTI Energy and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Patterson-UTI Energy Competitors||-15.07%||-7.98%||-2.38%|
Patterson-UTI Energy pays an annual dividend of $0.08 per share and has a dividend yield of 0.4%. Patterson-UTI Energy pays out -4.1% of its earnings in the form of a dividend. As a group, “Oil & Gas Drilling” companies pay a dividend yield of 4.5% and pay out -116.7% of their earnings in the form of a dividend. Patterson-UTI Energy lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.
Risk & Volatility
Patterson-UTI Energy has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, Patterson-UTI Energy’s rivals have a beta of 1.83, meaning that their average share price is 83% more volatile than the S&P 500.
Valuation and Earnings
This table compares Patterson-UTI Energy and its rivals gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Patterson-UTI Energy||$1.34 billion||$260.21 million||-9.91|
|Patterson-UTI Energy Competitors||$1.42 billion||$539.80 million||-6.29|
Patterson-UTI Energy’s rivals have higher revenue and earnings than Patterson-UTI Energy. Patterson-UTI Energy is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
This is a summary of recent ratings and price targets for Patterson-UTI Energy and its rivals, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Patterson-UTI Energy Competitors||510||1578||1278||59||2.26|
Patterson-UTI Energy currently has a consensus target price of $27.40, suggesting a potential upside of 40.30%. As a group, “Oil & Gas Drilling” companies have a potential upside of 30.03%. Given Patterson-UTI Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Patterson-UTI Energy is more favorable than its rivals.
Patterson-UTI Energy rivals beat Patterson-UTI Energy on 9 of the 14 factors compared.
Patterson-UTI Energy Company Profile
Patterson-UTI Energy, Inc. is an oilfield services company. The Company owns and operates a fleet of land-based drilling rigs and a fleet of pressure pumping equipment in the United States. The Company’s segments include Contract Drilling, Pressure Pumping and Other operations. The Contract Drilling segment markets its contract drilling services to independent and other oil and natural gas operators. As of December 31, 2016, the Company had 202 marketed land-based drilling rigs. The Pressure Pumping segment provides pressure pumping services to oil and natural gas operators primarily in Texas (Southwest Region) and the Appalachian region (Northeast Region). The Other operations segment includes the Company’s pipe handling components and related technology business, the oil and natural gas working interests and the Middle East/North Africa business. In addition, the Company owns and invests in oil and natural gas assets as a non-operating working interest owner in Texas and New Mexico.
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