Propetro (PUMP) & The Competition Head to Head Review

Propetro (NYSE: PUMP) is one of 33 publicly-traded companies in the “Oil & gas field services, not elsewhere classified” industry, but how does it compare to its peers? We will compare Propetro to related businesses based on the strength of its institutional ownership, valuation, profitability, earnings, analyst recommendations, dividends and risk.

Institutional and Insider Ownership

91.1% of Propetro shares are held by institutional investors. Comparatively, 66.4% of shares of all “Oil & gas field services, not elsewhere classified” companies are held by institutional investors. 5.0% of Propetro shares are held by company insiders. Comparatively, 9.2% of shares of all “Oil & gas field services, not elsewhere classified” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Propetro has a beta of 1.82, suggesting that its share price is 82% more volatile than the S&P 500. Comparatively, Propetro’s peers have a beta of 1.88, suggesting that their average share price is 88% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Propetro and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Propetro 0 0 4 0 3.00
Propetro Competitors 364 1502 2038 88 2.46

Propetro currently has a consensus price target of $25.50, suggesting a potential upside of 22.89%. As a group, “Oil & gas field services, not elsewhere classified” companies have a potential upside of 53.94%. Given Propetro’s peers higher possible upside, analysts plainly believe Propetro has less favorable growth aspects than its peers.

Profitability

This table compares Propetro and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Propetro 10.20% 30.52% 17.46%
Propetro Competitors -8.04% 38.11% 2.18%

Valuation & Earnings

This table compares Propetro and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Propetro $1.70 billion $173.86 million 10.38
Propetro Competitors $4.06 billion $294.68 million 14.16

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

Summary

Propetro peers beat Propetro on 8 of the 13 factors compared.

Propetro Company Profile

ProPetro Holding Corp., an oilfield services company, provides pressure pumping and other related services. The company offers hydraulic fracturing services; and a suite of well completion and production services, including cementing, acidizing, coiled tubing, flowback, surface air drilling, and drilling services. It serves the upstream oil and gas companies engaged in the exploration and production of North American unconventional oil and natural gas resources in the Permian Basin. As of December 31, 2018, the company's fleet comprised 20 hydraulic fracturing units with 905,000 hydraulic horsepower. ProPetro Holding Corp. was founded in 2007 and is headquartered in Midland, Texas.

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