Analyzing Patterson-UTI Energy (PTEN) and The Competition
Patterson-UTI Energy (NASDAQ: PTEN) is one of 17 public companies in the “Oil & Gas Drilling” industry, but how does it compare to its competitors? We will compare Patterson-UTI Energy to similar businesses based off the strength of its valuation, analyst recommendations, earnings, dividends, profitability, risk and institutional ownership.
Insider & Institutional Ownership
98.6% 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, endowments and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Patterson-UTI Energy and its competitors revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Patterson-UTI Energy||$1.34 billion||$260.21 million||-8.63|
|Patterson-UTI Energy Competitors||$1.42 billion||$539.62 million||-5.40|
Patterson-UTI Energy’s competitors have higher revenue and earnings than Patterson-UTI Energy. Patterson-UTI Energy is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently the more affordable than other companies in its industry.
This is a summary of current recommendations for Patterson-UTI Energy and its competitors, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Patterson-UTI Energy Competitors||509||1571||1274||59||2.26|
Patterson-UTI Energy presently has a consensus price target of $27.41, suggesting a potential upside of 61.23%. All “Oil & Gas Drilling” companies have a potential upside of 43.33%. Given Patterson-UTI Energy’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Patterson-UTI Energy is more favorable than its competitors.
Volatility and Risk
Patterson-UTI Energy has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, Patterson-UTI Energy’s competitors have a beta of 1.83, suggesting that their average stock price is 83% more volatile than the S&P 500.
Patterson-UTI Energy pays an annual dividend of $0.08 per share and has a dividend yield of 0.5%. 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 5.1% and pay out -116.7% of their earnings in the form of a dividend. Patterson-UTI Energy lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.
This table compares Patterson-UTI Energy and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Patterson-UTI Energy Competitors||-15.95%||-7.74%||-2.32%|
Patterson-UTI Energy competitors 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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