Seadrill Partners (NYSE: SDLP) and Pioneer Energy Services (NYSE:PES) are both small-cap oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, risk, valuation and profitability.
Seadrill Partners pays an annual dividend of $0.40 per share and has a dividend yield of 10.8%. Pioneer Energy Services does not pay a dividend.
This table compares Seadrill Partners and Pioneer Energy Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Pioneer Energy Services||-12.35%||-20.97%||-6.20%|
This is a summary of recent ratings and recommmendations for Seadrill Partners and Pioneer Energy Services, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Pioneer Energy Services||0||4||4||0||2.50|
Pioneer Energy Services has a consensus price target of $3.55, indicating a potential downside of 39.32%. Given Pioneer Energy Services’ higher possible upside, analysts clearly believe Pioneer Energy Services is more favorable than Seadrill Partners.
Institutional and Insider Ownership
14.7% of Seadrill Partners shares are held by institutional investors. Comparatively, 72.8% of Pioneer Energy Services shares are held by institutional investors. 6.1% of Pioneer Energy Services shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Risk & Volatility
Seadrill Partners has a beta of 1.97, indicating that its share price is 97% more volatile than the S&P 500. Comparatively, Pioneer Energy Services has a beta of 2.94, indicating that its share price is 194% more volatile than the S&P 500.
Valuation and Earnings
This table compares Seadrill Partners and Pioneer Energy Services’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Seadrill Partners||$1.13 billion||0.25||$141.20 million||N/A||N/A|
|Pioneer Energy Services||$446.45 million||1.02||-$75.11 million||($0.70)||-8.36|
Seadrill Partners has higher revenue and earnings than Pioneer Energy Services.
Seadrill Partners beats Pioneer Energy Services on 7 of the 13 factors compared between the two stocks.
Seadrill Partners Company Profile
Seadrill Partners LLC owns, operates, and acquires offshore drilling units. The company primarily serves various oil and gas companies. As of April 20, 2017, its fleet consisted of four semi-submersible drilling rigs, four drillships, and three tender rigs. The company was founded in 2012 and is headquartered in London, the United Kingdom.
Pioneer Energy Services Company Profile
Pioneer Energy Services Corp. provides land-based drilling and production services to oil and gas exploration and production companies in the United States and Colombia. The company offers contract land drilling services in the Marcellus/Utica, Eagle Ford, Permian Basin, and Bakken regions, as well as in Colombia. It operates a fleet of 16 AC rigs in the United States and 8 SCR rigs in Colombia. The company also provides well servicing, wireline services, and coiled tubing services to exploration and production companies in the onshore oil and gas producing regions in the Mid-Continent and Rocky Mountain states; and in the onshore and offshore Gulf Coast. As of December 31, 2017, it operated a fleet of 113 rigs with 550 horsepower and 12 rigs with 600 horsepower; 112 wireline units; and 10 onshore and 4 offshore coiled tubing units. The company was formerly known as Pioneer Drilling Company and changed its name to Pioneer Energy Services Corp. in 2012. Pioneer Energy Services Corp. was founded in 1968 and is based in San Antonio, Texas.
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