Comparing Precision Drilling Corporation (PDS) & Helmerich & Payne (HP)
Precision Drilling Corporation (NYSE: PDS) and Helmerich & Payne (NYSE:HP) are both oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, valuation, institutional ownership, profitability, earnings and dividends.
Institutional & Insider Ownership
59.6% of Precision Drilling Corporation shares are held by institutional investors. 1.0% of Precision Drilling Corporation shares are held by company insiders. Comparatively, 4.2% of Helmerich & Payne shares are held 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.
Risk & Volatility
Precision Drilling Corporation has a beta of 1.79, indicating that its stock price is 79% more volatile than the S&P 500. Comparatively, Helmerich & Payne has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500.
Helmerich & Payne pays an annual dividend of $2.80 per share and has a dividend yield of 5.4%. Precision Drilling Corporation does not pay a dividend. Helmerich & Payne pays out -167.7% of its earnings in the form of a dividend. Helmerich & Payne has increased its dividend for 44 consecutive years.
This is a breakdown of current ratings and recommmendations for Precision Drilling Corporation and Helmerich & Payne, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Precision Drilling Corporation||0||7||7||1||2.60|
|Helmerich & Payne||8||12||3||0||1.78|
Precision Drilling Corporation currently has a consensus target price of $5.58, indicating a potential upside of 134.45%. Helmerich & Payne has a consensus target price of $53.95, indicating a potential upside of 3.67%. Given Precision Drilling Corporation’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Precision Drilling Corporation is more favorable than Helmerich & Payne.
Earnings & Valuation
This table compares Precision Drilling Corporation and Helmerich & Payne’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Precision Drilling Corporation||$910.75 million||0.77||$202.95 million||($0.35)||-6.80|
|Helmerich & Payne||$1.60 billion||3.53||$373.98 million||($1.67)||-31.16|
Helmerich & Payne has higher revenue and earnings than Precision Drilling Corporation. Helmerich & Payne is trading at a lower price-to-earnings ratio than Precision Drilling Corporation, indicating that it is currently the more affordable of the two stocks.
This table compares Precision Drilling Corporation and Helmerich & Payne’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%|
|Helmerich & Payne||-11.19%||-3.37%||-2.24%|
Helmerich & Payne beats Precision Drilling Corporation on 10 of the 17 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 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.
Receive News & Ratings for Precision Drilling Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Precision Drilling Corporation and related companies with MarketBeat.com's FREE daily email newsletter.