Patterson-UTI Energy (PTEN) & The Competition Critical Review
Patterson-UTI Energy (NASDAQ: PTEN) is one of 17 public companies in the “Oil & Gas Drilling” industry, but how does it contrast to its rivals? We will compare Patterson-UTI Energy to similar businesses based on the strength of its profitability, risk, valuation, analyst recommendations, dividends, earnings and institutional ownership.
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||-15.95%||-7.74%||-2.32%|
Risk & Volatility
Patterson-UTI Energy has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500. Comparatively, Patterson-UTI Energy’s rivals have a beta of 1.83, indicating 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 0.4%. 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 4.6% 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.
Valuation & Earnings
This table compares Patterson-UTI Energy and its rivals top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Patterson-UTI Energy||$1.34 billion||$260.21 million||-9.50|
|Patterson-UTI Energy Competitors||$1.42 billion||$539.80 million||-6.13|
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.
Institutional & 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, endowments and hedge funds believe a company is poised for long-term growth.
This is a breakdown of recent recommendations 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||1575||1278||59||2.26|
Patterson-UTI Energy presently has a consensus price target of $27.55, indicating a potential upside of 47.25%. As a group, “Oil & Gas Drilling” companies have a potential upside of 32.64%. Given Patterson-UTI Energy’s stronger consensus rating and higher possible upside, research 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.
About Patterson-UTI Energy
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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