Pioneer Energy Services Corp. (NYSE: PES) and Parker Drilling (NYSE:PKD) are both small-cap oil & gas drilling – nec companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, earnings, institutional ownership and profitability.
Risk and Volatility
Pioneer Energy Services Corp. has a beta of 2.9, indicating that its stock price is 190% more volatile than the S&P 500. Comparatively, Parker Drilling has a beta of 1.54, indicating that its stock price is 54% more volatile than the S&P 500.
Earnings & Valuation
This table compares Pioneer Energy Services Corp. and Parker Drilling’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Pioneer Energy Services Corp.||$277.08 million||0.62||-$128.39 million||($1.34)||-1.64|
|Parker Drilling||$427.00 million||0.38||-$230.81 million||($1.08)||-1.09|
Pioneer Energy Services Corp. has higher revenue, but lower earnings than Parker Drilling. Pioneer Energy Services Corp. is trading at a lower price-to-earnings ratio than Parker Drilling, indicating that it is currently the more affordable of the two stocks.
This table compares Pioneer Energy Services Corp. and Parker Drilling’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Pioneer Energy Services Corp.||-25.19%||-26.46%||-9.35%|
Insider and Institutional Ownership
73.9% of Pioneer Energy Services Corp. shares are owned by institutional investors. Comparatively, 64.5% of Parker Drilling shares are owned by institutional investors. 6.1% of Pioneer Energy Services Corp. shares are owned by company insiders. Comparatively, 3.6% of Parker Drilling 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.
This is a breakdown of current recommendations for Pioneer Energy Services Corp. and Parker Drilling, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Pioneer Energy Services Corp.||0||6||4||0||2.40|
Pioneer Energy Services Corp. currently has a consensus price target of $4.91, indicating a potential upside of 123.01%. Given Pioneer Energy Services Corp.’s stronger consensus rating and higher probable upside, analysts clearly believe Pioneer Energy Services Corp. is more favorable than Parker Drilling.
Pioneer Energy Services Corp. beats Parker Drilling on 11 of the 13 factors compared between the two stocks.
About Pioneer Energy Services Corp.
Pioneer Energy Services Corp. provides land-based drilling services and production services to a group of independent oil and gas exploration and production companies in the United States and internationally in Colombia. The Company operates through two segments, which include drilling services segment and production services segment. It also provides two of its services (coiled tubing and wireline services) offshore in the Gulf of Mexico. Its drilling services segment provides contract land drilling services to a group of exploration and production companies through the Company’s four drilling divisions in the United States, and internationally in Colombia. Its production services segment provides a range of services to a group of exploration and production companies, with its operations concentrated in the various United States onshore oil and gas producing regions in the Mid-Continent and Rocky Mountain states and in the Gulf Coast.
About Parker Drilling
Parker Drilling Company (Parker Drilling) is a provider of contract drilling, and drilling-related services and rental tools and services. The Company’s business consists of two business lines: drilling services and rental tools services. Its Rental Tools Services business includes U.S. Rental Tools and International Rental Tools segments, and its Drilling Services business includes its U.S. (Lower 48) Drilling, and International & Alaska Drilling segments. In its Drilling Services business, the Company drills oil and gas wells for customers in both the United States and international markets. In its Rental Tools Services business, the Company provides rental equipment and services to exploration and production (E&P) companies, drilling contractors and service companies on land and offshore in the United States and select international markets. As of December 31, 2016, the Company had operations in 20 countries.
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