Contrasting Pacific Drilling SA (PACDQ) & Patterson-UTI Energy (PTEN)

Patterson-UTI Energy (NASDAQ: PTEN) and Pacific Drilling SA (OTCMKTS:PACDQ) are both energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, valuation and analyst recommendations.

Dividends

Patterson-UTI Energy pays an annual dividend of $0.08 per share and has a dividend yield of 0.4%. Pacific Drilling SA does not pay a dividend. Patterson-UTI Energy pays out -5.2% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Patterson-UTI Energy and Pacific Drilling SA’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Patterson-UTI Energy $915.87 million 4.86 -$318.63 million ($1.55) -12.92
Pacific Drilling SA N/A N/A N/A ($20.59) -0.03

Pacific Drilling SA has higher revenue, but lower earnings than Patterson-UTI Energy. Patterson-UTI Energy is trading at a lower price-to-earnings ratio than Pacific Drilling SA, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and recommmendations for Patterson-UTI Energy and Pacific Drilling SA, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Patterson-UTI Energy 0 10 16 0 2.62
Pacific Drilling SA 0 0 0 0 N/A

Patterson-UTI Energy presently has a consensus price target of $27.05, indicating a potential upside of 35.13%. Given Patterson-UTI Energy’s higher possible upside, equities analysts clearly believe Patterson-UTI Energy is more favorable than Pacific Drilling SA.

Profitability

This table compares Patterson-UTI Energy and Pacific Drilling SA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Patterson-UTI Energy -4.93% -3.76% -2.49%
Pacific Drilling SA -205.84% -22.13% -9.74%

Institutional & Insider Ownership

95.1% of Patterson-UTI Energy shares are owned by institutional investors. Comparatively, 6.4% of Pacific Drilling SA shares are owned by institutional investors. 4.6% of Patterson-UTI Energy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility & Risk

Patterson-UTI Energy has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500. Comparatively, Pacific Drilling SA has a beta of 3.32, indicating that its share price is 232% more volatile than the S&P 500.

Summary

Patterson-UTI Energy beats Pacific Drilling SA on 11 of the 12 factors compared between the two stocks.

About Patterson-UTI Energy

Patterson-UTI Energy, Inc. is an oilfield services company. The Company owns and operates a fleet of land-based drilling rigs and a fleet of pressure pumping equipment in the United States. The Company’s segments include Contract Drilling, Pressure Pumping and Other operations. The Contract Drilling segment markets its contract drilling services to independent and other oil and natural gas operators. As of December 31, 2016, the Company had 202 marketed land-based drilling rigs. The Pressure Pumping segment provides pressure pumping services to oil and natural gas operators primarily in Texas (Southwest Region) and the Appalachian region (Northeast Region). The Other operations segment includes the Company’s pipe handling components and related technology business, the oil and natural gas working interests and the Middle East/North Africa business. In addition, the Company owns and invests in oil and natural gas assets as a non-operating working interest owner in Texas and New Mexico.

About Pacific Drilling SA

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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