Dril-Quip (DRQ) versus Its Competitors Head-To-Head Comparison

Dril-Quip (NYSE: DRQ) is one of 14 publicly-traded companies in the “Oil & gas field machinery” industry, but how does it contrast to its peers? We will compare Dril-Quip to similar businesses based on the strength of its analyst recommendations, valuation, earnings, institutional ownership, dividends, profitability and risk.

Risk and Volatility

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Dril-Quip has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500. Comparatively, Dril-Quip’s peers have a beta of 0.97, meaning that their average stock price is 3% less volatile than the S&P 500.

Insider and Institutional Ownership

74.4% of shares of all “Oil & gas field machinery” companies are owned by institutional investors. 0.9% of Dril-Quip shares are owned by company insiders. Comparatively, 7.1% of shares of all “Oil & gas field machinery” companies 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.

Profitability

This table compares Dril-Quip and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dril-Quip -22.10% 0.56% 0.53%
Dril-Quip Competitors -7.81% -9.68% -0.43%

Analyst Ratings

This is a summary of current ratings and recommmendations for Dril-Quip and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dril-Quip 0 7 2 0 2.22
Dril-Quip Competitors 149 872 859 20 2.39

Dril-Quip presently has a consensus target price of $49.71, suggesting a potential upside of 12.86%. As a group, “Oil & gas field machinery” companies have a potential upside of 15.01%. Given Dril-Quip’s peers stronger consensus rating and higher possible upside, analysts clearly believe Dril-Quip has less favorable growth aspects than its peers.

Earnings and Valuation

This table compares Dril-Quip and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Dril-Quip $455.47 million -$100.63 million 169.42
Dril-Quip Competitors $3.65 billion -$223.95 million 16.92

Dril-Quip’s peers have higher revenue, but lower earnings than Dril-Quip. Dril-Quip is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Dril-Quip peers beat Dril-Quip on 9 of the 13 factors compared.

Dril-Quip Company Profile

Dril-Quip, Inc., together with its subsidiaries, designs, manufactures, sells, and services onshore and offshore drilling and production equipment for use in deepwater, harsh environment, and severe service applications worldwide. It operates through three segments: Western Hemisphere, Eastern Hemisphere, and Asia-Pacific. The company's principal products include subsea and surface wellheads, subsea and surface production trees, subsea control systems and manifolds, mudline hanger systems, specialty connectors and associated pipes, drilling and production riser systems, liner hangers, wellhead connectors, diverters, and safety valves, as well as consumable downhole products. It also provides technical advisory services, and rework and reconditioning services, as well as rental and purchase of running tools for use in the installation and retrieval of the its products. The company's products are used to explore for oil and gas from offshore drilling rigs, such as floating rigs and jack-up rigs; and for drilling and production of oil and gas wells on offshore platforms, tension leg platforms, and Spars, as well as moored vessels, such as floating production, storage, and offloading monohull moored vessels. It sells its products directly through its sales personnel, independent sales agents, and representatives to integrated, independent, and foreign national oil and gas companies, as well as drilling contractors, and engineering and construction companies. Dril-Quip, Inc. was founded in 1981 and is headquartered in Houston, Texas.

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