Critical Survey: Key Energy Services (KEG) and The Competition

Key Energy Services (NYSE: KEG) is one of 25 publicly-traded companies in the “Drilling oil & gas wells” industry, but how does it contrast to its rivals? We will compare Key Energy Services to related companies based on the strength of its earnings, profitability, dividends, analyst recommendations, institutional ownership, risk and valuation.

Valuation & Earnings

How to Become a New Pot Stock Millionaire

This table compares Key Energy Services and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Key Energy Services $436.17 million N/A -2.33
Key Energy Services Competitors $1.16 billion -$407.98 million -31.00

Key Energy Services’ rivals have higher revenue, but lower earnings than Key Energy Services. Key Energy Services is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Key Energy Services and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Key Energy Services 0 5 2 0 2.29
Key Energy Services Competitors 632 1852 1574 54 2.26

Key Energy Services currently has a consensus price target of $17.33, indicating a potential upside of 18.07%. As a group, “Drilling oil & gas wells” companies have a potential downside of 0.13%. Given Key Energy Services’ stronger consensus rating and higher possible upside, analysts clearly believe Key Energy Services is more favorable than its rivals.

Volatility & Risk

Key Energy Services has a beta of 2.8, indicating that its stock price is 180% more volatile than the S&P 500. Comparatively, Key Energy Services’ rivals have a beta of 1.82, indicating that their average stock price is 82% more volatile than the S&P 500.

Insider and Institutional Ownership

48.2% of Key Energy Services shares are held by institutional investors. Comparatively, 69.0% of shares of all “Drilling oil & gas wells” companies are held by institutional investors. 5.5% of shares of all “Drilling oil & gas wells” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Key Energy Services and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Key Energy Services N/A N/A N/A
Key Energy Services Competitors -27.39% -14.10% -3.94%

Summary

Key Energy Services beats its rivals on 7 of the 12 factors compared.

Key Energy Services Company Profile

Key Energy Services, Inc. engages in onshore energy production services. It operates through the following segments: U.S. Rig Services, Fluid Management Services, Coiled Tubing Services, Fishing and Rental Services, International, and Functional Support. The U.S. Rig Services segment includes the completion of newly drilled wells, workover and recompletion of existing oil and natural gas wells, well maintenance, and the plugging and abandonment of wells. The Fluid Management Services segment involves in providing transportation and well-site storage services for fluids utilized in connection with drilling, completions, workover, and maintenance activities. The Coiled Tubing Services segment offers use of a continuous metal pipe spooled onto a large reel which is then deployed into oil and natural gas wells. The Fishing and Rental Services segment includes fishing services and rental equipment designed for use in providing onshore and offshore drilling and workover services. The International segment covers operations in Mexico and Russia. The Functional Support segment comprises of unallocated overhead costs associated with sales, safety, and administrative support for each of reporting segments. The company was founded on April 1977 and is headquartered in Houston, TX.

Receive News & Ratings for Key Energy Services Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Key Energy Services and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply