Precision Drilling Corporation (PDS) vs. Ensco Plc (ESV) Critical Comparison
Precision Drilling Corporation (NYSE: PDS) and Ensco Plc (NYSE:ESV) are both small-cap oils/energy companies, but which is the better business? We will compare the two businesses based on the strength of their risk, profitability, earnings, dividends, institutional ownership, analyst recommendations and valuation.
Earnings and Valuation
This table compares Precision Drilling Corporation and Ensco Plc’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Precision Drilling Corporation||$872.89 million||0.92||$194.51 million||($0.35)||-7.83|
|Ensco Plc||$1.98 billion||0.70||$716.60 million||$0.17||26.88|
Ensco Plc has higher revenue and earnings than Precision Drilling Corporation. Precision Drilling Corporation is trading at a lower price-to-earnings ratio than Ensco Plc, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings for Precision Drilling Corporation and Ensco Plc, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Precision Drilling Corporation||0||6||9||1||2.69|
Precision Drilling Corporation currently has a consensus price target of $6.28, suggesting a potential upside of 129.20%. Ensco Plc has a consensus price target of $9.85, suggesting a potential upside of 115.60%. Given Precision Drilling Corporation’s stronger consensus rating and higher possible upside, research analysts plainly believe Precision Drilling Corporation is more favorable than Ensco Plc.
Ensco Plc pays an annual dividend of $0.04 per share and has a dividend yield of 0.9%. Precision Drilling Corporation does not pay a dividend. Ensco Plc pays out 23.5% of its earnings in the form of a dividend.
Institutional and Insider Ownership
61.5% of Precision Drilling Corporation shares are held by institutional investors. Comparatively, 91.6% of Ensco Plc shares are held by institutional investors. 1.0% of Precision Drilling Corporation shares are held by company insiders. Comparatively, 0.6% of Ensco Plc shares are held by company 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.
Volatility & Risk
Precision Drilling Corporation has a beta of 1.77, suggesting that its stock price is 77% more volatile than the S&P 500. Comparatively, Ensco Plc has a beta of 1.65, suggesting that its stock price is 65% more volatile than the S&P 500.
This table compares Precision Drilling Corporation and Ensco Plc’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Precision Drilling Corporation||-12.38%||-7.10%||-3.22%|
Ensco Plc beats Precision Drilling Corporation on 9 of the 16 factors compared between the two stocks.
About Precision Drilling Corporation
Precision Drilling Corporation (Precision) is an oilfield services company. The Company provides onshore drilling and completion and production services to exploration and production companies in the oil and natural gas industry. The Company operates through two segments: Contract Drilling Services, and Completion and Production Services. The Contract Drilling Services segment operates its rigs in Canada, the United States and internationally. The Completion and Production Services segment provides completion and workover services and ancillary services to oil and natural gas exploration and production companies in Canada and the United States. As of December 31, 2016, the Contract Drilling Services segment consisted of 255 land drilling rigs, including 135 in Canada, 103 in the United States, five in Mexico, four in Saudi Arabia, five in Kuwait, two in the Kurdistan region of Iraq and one in the country of Georgia.
About Ensco Plc
Ensco plc is an offshore contract drilling company. The Company provides offshore contract drilling services to the international oil and gas industry. Its segments include Floaters, Jackups and Other. The Floaters segment includes its drillships and semisubmersible rigs, and provides contract drilling. Other consists of management services on rigs owned by third parties. The Floaters and the Jackups segments provide contract drilling. It owned and operated an offshore drilling rig fleet of 57 rigs, including two rigs under construction, with drilling operations around the world, as of December 31, 2016. As of December 31, 2016, its rig fleet included eight drill ships, 10 dynamically positioned semisubmersible rigs, three moored semisubmersible rigs and 38 jackup rigs. As of December 31, 2016, of its 59 rigs, 25 were located in the Middle East, Africa and Asia Pacific, 16 were located in North and South America (including Brazil) and 18 were located in Europe and the Mediterranean.
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