Critical Review: Precision Drilling Corporation (PDS) versus Its Peers
Precision Drilling Corporation (NYSE: PDS) is one of 18 publicly-traded companies in the “Oil & Gas Drilling” industry, but how does it compare to its competitors? We will compare Precision Drilling Corporation to similar businesses based on the strength of its earnings, dividends, institutional ownership, risk, valuation, profitability and analyst recommendations.
Earnings and Valuation
This table compares Precision Drilling Corporation and its competitors revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Precision Drilling Corporation||$910.75 million||$202.95 million||-8.03|
|Precision Drilling Corporation Competitors||$1.42 billion||$540.19 million||-6.66|
Precision Drilling Corporation’s competitors have higher revenue and earnings than Precision Drilling Corporation. Precision Drilling Corporation is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
Risk and Volatility
Precision Drilling Corporation has a beta of 1.8, suggesting that its stock price is 80% more volatile than the S&P 500. Comparatively, Precision Drilling Corporation’s competitors have a beta of 1.89, suggesting that their average stock price is 89% more volatile than the S&P 500.
This table compares Precision Drilling Corporation and its competitors’ 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%|
|Precision Drilling Corporation Competitors||-18.41%||-8.37%||-2.62%|
This is a breakdown of current recommendations and price targets for Precision Drilling Corporation and its competitors, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Precision Drilling Corporation||0||6||8||1||2.67|
|Precision Drilling Corporation Competitors||487||1489||1216||57||2.26|
Precision Drilling Corporation presently has a consensus target price of $6.38, suggesting a potential upside of 127.05%. As a group, “Oil & Gas Drilling” companies have a potential upside of 23.30%. Given Precision Drilling Corporation’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Precision Drilling Corporation is more favorable than its competitors.
Institutional and Insider Ownership
61.4% of Precision Drilling Corporation shares are held by institutional investors. Comparatively, 74.9% of shares of all “Oil & Gas Drilling” companies are held by institutional investors. 1.0% of Precision Drilling Corporation 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, hedge funds and endowments believe a company will outperform the market over the long term.
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.
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