Contrasting Subsea 7 (OTCMKTS:SUBCY) & Petrofac (OTCMKTS:POFCY)

Petrofac (OTCMKTS:POFCY) and Subsea 7 (OTCMKTS:SUBCY) are both energy companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Profitability

This table compares Petrofac and Subsea 7’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Petrofac	N/A	N/A	N/A
Subsea 7	4.08%	6.66%	3.59%

Valuation and Earnings

This table compares Petrofac and Subsea 7″s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Petrofac	$2.50 billion	0.00	-$505.00 million	N/A	N/A
Subsea 7	$6.84 billion	1.09	$201.40 million	$0.96	26.27

Subsea 7 has higher revenue and earnings than Petrofac.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Petrofac and Subsea 7, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Petrofac	0	0	0	0	0.00
Subsea 7	0	2	0	2	3.00

Given Petrofac’s higher probable upside, equities analysts plainly believe Petrofac is more favorable than Subsea 7.

Volatility & Risk

Petrofac has a beta of 2.84, suggesting that its share price is 184% more volatile than the S&P 500. Comparatively, Subsea 7 has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500.

Institutional and Insider Ownership

0.0% of Subsea 7 shares are owned by institutional investors. 1.0% of Subsea 7 shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Subsea 7 beats Petrofac on 9 of the 11 factors compared between the two stocks.

About Petrofac

Petrofac Limited designs, builds, manages, and maintains infrastructure for the energy industries in the United Kingdom, Algeria, Thailand, Oman, Kuwait, Iraq, the United Arab Emirates, the Netherlands, and internationally. It operates through three segments: Engineering & Construction (E&C); Asset Solutions; and Integrated Energy Services (IES). The E&C segment provides onshore and offshore engineering, procurement, construction, installation, and commissioning services. The Asset Solutions segment offers concept, feasibility, and front-end engineering design services, as well as manages and maintains onshore and offshore operations. The IES segment focuses on delivering value from the existing asset portfolio. The company was founded in 1981 and is based in St Helier, Jersey.

About Subsea 7

Subsea 7 S.A. delivers offshore projects and services for the energy industry worldwide. It provides subsea field development products and services, including project management, design and engineering, procurement, fabrication, survey, installation, and commissioning of production facilities on the seabed and the tie-back of its facilities to fixed or floating platforms or to the shore. The company also offers engineering, procurement, commissioning, and installation of subsea umbilicals, risers, and flowlines; inspection, repair, maintenance, remote intervention, and integrity management of subsea infrastructure services; conventional services comprising fabrication, installation, extension, and refurbishment of fixed and floating platforms and associated pipelines in shallow water; and hook-up services. In addition, it operates heavy lifting operations and heavy transportation services for renewables structures; and installs offshore wind turbine foundations, as well as engages in the decommissioning of redundant offshore structures. Further, the company provides remotely operated vehicles (ROVs) and tooling services to support exploration and production activities, as well as engineering and advisory services for customers in the oil and gas, renewables, and utilities industries. The company was incorporated in 1993 and is based in Luxembourg, Luxembourg.