Key Energy Services (KEG) and Nabors Industries (NBR) Head to Head Analysis

Key Energy Services (NYSE: KEG) and Nabors Industries (NYSE:NBR) are both oils/energy companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Profitability

This table compares Key Energy Services and Nabors Industries’ 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
Nabors Industries -19.81% -14.45% -5.13%

Analyst Ratings

This is a breakdown of current ratings for Key Energy Services and Nabors Industries, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Key Energy Services 0 4 2 0 2.33
Nabors Industries 0 7 13 0 2.65

Key Energy Services presently has a consensus price target of $15.50, suggesting a potential downside of 3.06%. Nabors Industries has a consensus price target of $9.23, suggesting a potential upside of 48.55%. Given Nabors Industries’ stronger consensus rating and higher possible upside, analysts plainly believe Nabors Industries is more favorable than Key Energy Services.

Insider and Institutional Ownership

56.1% of Key Energy Services shares are held by institutional investors. Comparatively, 85.9% of Nabors Industries shares are held by institutional investors. 4.2% of Nabors Industries shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

Key Energy Services has a beta of 2.4, suggesting that its stock price is 140% more volatile than the S&P 500. Comparatively, Nabors Industries has a beta of 1.59, suggesting that its stock price is 59% more volatile than the S&P 500.

Earnings & Valuation

This table compares Key Energy Services and Nabors Industries’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Key Energy Services $436.17 million 0.74 -$127.25 million ($6.29) -2.54
Nabors Industries $2.57 billion 0.87 -$546.81 million ($1.63) -3.81

Key Energy Services has higher earnings, but lower revenue than Nabors Industries. Nabors Industries is trading at a lower price-to-earnings ratio than Key Energy Services, indicating that it is currently the more affordable of the two stocks.

Dividends

Nabors Industries pays an annual dividend of $0.24 per share and has a dividend yield of 3.9%. Key Energy Services does not pay a dividend. Nabors Industries pays out -14.7% of its earnings in the form of a dividend. Nabors Industries has increased its dividend for 4 consecutive years.

Summary

Nabors Industries beats Key Energy Services on 11 of the 17 factors compared between the two stocks.

About Key Energy Services

Key Energy Services, Inc. operates as an onshore rig-based well servicing contractor in the United States. The company's U.S. Rig Services segment is involved in the completion of newly drilled wells; workover and recompletion of existing oil and natural gas wells; well maintenance activities; and plugging and abandonment of wells at the end of their lives, as well as provision of specialty drilling services to oil and natural gas producers. Its Fluid Management Services segment offers transportation and well-site storage services for fluids utilized in drilling, completions, workover, and maintenance activities; and disposal services for fluids produced subsequent to well completion. It also operates a fleet of hot oilers used to clear soluble restrictions in a wellbore. The company's Coiled Tubing Services segment offers services for wellbore clean-outs, nitrogen jet lifts, through-tubing fishing, and formation stimulations; mills temporary isolation plugs that separate frac zones; and other pre- and post-hydraulic fracturing well preparation services. Its Fishing and Rental Services segment provides fishing services that involve recovering lost or stuck equipment in the wellbore utilizing fishing tools; and rents drill pipes, tubulars, handling tools, pressure-control equipment, pumps, power swivels, reversing units, and foam air units, as well as frac stack equipment used to support hydraulic fracturing operations and the associated flowback of frac fluids, proppants, oil, and natural gas. The company was formerly known as Key Energy Group, Inc. and changed its name to Key Energy Services, Inc. in December 1998. Key Energy Services, Inc. was founded in 1977 and is based in Houston, Texas.

About Nabors Industries

Nabors Industries Ltd. provides drilling and drilling-related services and technologies for land-based and offshore oil and natural gas wells. It operates through five segments: U.S., Canada, International, Drilling Solutions, and Rig Technologies. The company offers equipment manufacturing, rig instrumentation, optimization software, and directional drilling services. It also provides patented steering systems and rig instrumentation software systems, including ROCKIT directional drilling system that offers data collection services to oil and gas exploration and service companies; REVit control system, a stick slip mitigation system; RIGWATCH software, which monitors a rig's real-time performance and provides daily reporting for drilling operations; and DrillSmart software that allows the drilling system to adapt operating parameters and drilling conditions. In addition, the company offers measurement while drilling (MWD) systems and services, such as AccuMP mud pulse MWD system, which is designed to address the various MWD reliability issues; AccuWave collar mounted Electromagnetic MWD system that addresses the needs of the land market through the technology and design techniques; and Nabors' AccuSteer Measurement While Drilling (M/LWD) Suite, which is a premier dynamics evaluation MWD system for performance drilling with integrated advanced geosteering measurements. Further, it manufactures and sells top drives, catwalks, wrenches, draw works, and other drilling related equipment, such as robotic systems and downhole tools; and provides automated tubular and tool handling equipment. As of December 31, 2017, the company marketed approximately 407 rigs for land-based drilling operations in the United States and Canada, as well as in 20 other countries worldwide; and 38 rigs for offshore drilling operations in the United States and internationally. Nabors Industries Ltd. was founded in 1952 and is headquartered in Hamilton, Bermuda.

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