Analyzing Helmerich & Payne (HP) and Its Peers
Helmerich & Payne (NYSE: HP) is one of 18 publicly-traded companies in the “Oil & Gas Drilling” industry, but how does it compare to its rivals? We will compare Helmerich & Payne to similar companies based on the strength of its risk, valuation, institutional ownership, earnings, dividends, analyst recommendations and profitability.
Earnings and Valuation
This table compares Helmerich & Payne and its rivals top-line revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Helmerich & Payne||$1.60 billion||$373.98 million||-30.62|
|Helmerich & Payne Competitors||$1.42 billion||$540.19 million||-6.66|
Helmerich & Payne has higher revenue, but lower earnings than its rivals. Helmerich & Payne 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.
Volatility & Risk
Helmerich & Payne has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500. Comparatively, Helmerich & Payne’s rivals have a beta of 1.89, indicating that their average stock price is 89% more volatile than the S&P 500.
This table compares Helmerich & Payne and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Helmerich & Payne||-11.19%||-3.37%||-2.24%|
|Helmerich & Payne Competitors||-18.41%||-8.37%||-2.62%|
This is a breakdown of recent ratings and target prices for Helmerich & Payne and its rivals, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Helmerich & Payne||8||11||3||0||1.77|
|Helmerich & Payne Competitors||487||1489||1218||57||2.26|
Helmerich & Payne presently has a consensus price target of $54.63, indicating a potential upside of 6.83%. As a group, “Oil & Gas Drilling” companies have a potential upside of 32.32%. Given Helmerich & Payne’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Helmerich & Payne has less favorable growth aspects than its rivals.
Helmerich & Payne pays an annual dividend of $2.80 per share and has a dividend yield of 5.5%. Helmerich & Payne pays out -167.7% 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. Helmerich & Payne has increased its dividend for 44 consecutive years. Helmerich & Payne is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.
Institutional & Insider Ownership
74.9% of shares of all “Oil & Gas Drilling” companies are owned by institutional investors. 3.9% of Helmerich & Payne shares are owned by company insiders. Comparatively, 2.2% of shares of all “Oil & Gas Drilling” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
About Helmerich & Payne
Helmerich & Payne, Inc. is engaged in contract drilling of oil and gas wells for others. The Company operates in the contract drilling industry. The Company’s contract drilling business consists of three segments: U.S. Land, Offshore and International Land. The Company is also engaged in the ownership, development and operation of commercial real estate and the research and development of rotary steerable technology. Its real estate investments are located within Tulsa, Oklahoma, and include a shopping center containing approximately 441,000 leasable square feet, multi-tenant industrial warehouse properties containing approximately one million leasable square feet and approximately 210 acres of undeveloped real estate. The Company provides drilling rigs, equipment, personnel and camps on a contract basis. The Company’s subsidiaries include Helmerich & Payne International Drilling Co. and Helmerich & Payne de Venezuela, C.A.
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