Pacific Drilling (PACDQ) versus Its Competitors Critical Review
Pacific Drilling (OTCMKTS: PACDQ) is one of 17 public companies in the “Oil & Gas Drilling” industry, but how does it contrast to its peers? We will compare Pacific Drilling to related businesses based on the strength of its earnings, dividends, risk, analyst recommendations, valuation, profitability and institutional ownership.
This table compares Pacific Drilling and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Pacific Drilling Competitors||-17.17%||-4.72%||-1.12%|
This is a breakdown of current ratings and target prices for Pacific Drilling and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Pacific Drilling Competitors||497||1565||1262||58||2.26|
As a group, “Oil & Gas Drilling” companies have a potential upside of 15.31%. Given Pacific Drilling’s peers higher probable upside, analysts plainly believe Pacific Drilling has less favorable growth aspects than its peers.
Earnings and Valuation
This table compares Pacific Drilling and its peers revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Pacific Drilling||$769.47 million||-$37.15 million||-0.03|
|Pacific Drilling Competitors||$1.59 billion||-$49.50 million||0.68|
Pacific Drilling’s peers have higher revenue, but lower earnings than Pacific Drilling. Pacific Drilling is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Risk & Volatility
Pacific Drilling has a beta of 3.21, indicating that its share price is 221% more volatile than the S&P 500. Comparatively, Pacific Drilling’s peers have a beta of 2.19, indicating that their average share price is 119% more volatile than the S&P 500.
Institutional and Insider Ownership
0.4% of Pacific Drilling shares are owned by institutional investors. Comparatively, 72.7% of shares of all “Oil & Gas Drilling” companies are owned by institutional investors. 2.2% of shares of all “Oil & Gas Drilling” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Pacific Drilling peers beat Pacific Drilling on 7 of the 9 factors compared.
About Pacific Drilling
Pacific Drilling S.A. is an international offshore drilling contractor. The Company provides offshore drilling services to the oil and natural gas industry through the use of high-specification rigs. The Company’s primary business is to contract its high-specification rigs, related equipment and work crews, primarily on a day rate basis, to drill wells for its clients. The Company is engaged in drillships segment. The Company focuses on the high-specification segment of the floating rig market. The Company considers high-specification requirements to include rigs in water depths of approximately 7,500 feet or projects requiring advanced operating capabilities, such as hook-loads (>800 tons), accommodations (over 200 beds), mud storage and pumping capacity, and deck-load and space capabilities. The Company’s contract drillships operate in the deepwater regions of the United States, Gulf of Mexico and Nigeria.
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