New Source Energy Partners (OTCMKTS:NSLPQ) vs. Precision Drilling (NYSE:PDS) Head to Head Contrast

New Source Energy Partners (OTCMKTS:NSLPQ) and Precision Drilling (NYSE:PDS) are both energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.

Profitability

This table compares New Source Energy Partners and Precision Drilling’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
New Source Energy Partners	N/A	N/A	N/A
Precision Drilling	5.67%	6.21%	3.62%

Earnings and Valuation

This table compares New Source Energy Partners and Precision Drilling”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
New Source Energy Partners	N/A	N/A	N/A	N/A	N/A
Precision Drilling	$1.85 billion	0.39	$81.15 million	$4.75	11.40

Precision Drilling has higher revenue and earnings than New Source Energy Partners.

Insider and Institutional Ownership

48.9% of Precision Drilling shares are held by institutional investors. 1.0% of Precision Drilling shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

New Source Energy Partners has a beta of 2.45, meaning that its share price is 145% more volatile than the S&P 500. Comparatively, Precision Drilling has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for New Source Energy Partners and Precision Drilling, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
New Source Energy Partners	0	0	0	0	0.00
Precision Drilling	0	1	3	0	2.75

Precision Drilling has a consensus target price of $86.00, indicating a potential upside of 58.81%. Given Precision Drilling’s stronger consensus rating and higher possible upside, analysts plainly believe Precision Drilling is more favorable than New Source Energy Partners.

Summary

Precision Drilling beats New Source Energy Partners on 9 of the 10 factors compared between the two stocks.

About New Source Energy Partners

New Source Energy Partners L.P. acquires, owns, develops, and produces oil and natural gas properties in the United States. It operates through two segments, Exploration and Production, and Oilfield Services. The company also offers various oilfield services, including wellsite services during the drilling and completion stages of a well, such as blowout prevention, surface valve, and flowback services for horizontal and vertical wells in oil, natural gas, and NGL production regions in North America. New Source Energy GP, LLC operates as a general partner of the company. The company was founded in 2012 and is headquartered in Oklahoma City, Oklahoma. On March 15, 2016, New Source Energy Partners LP, along with its affiliate, filed a voluntary petition for liquidation under Chapter 7 in the US Bankruptcy Court for the District of Delaware.

About Precision Drilling

Precision Drilling Corporation, a drilling company, provides onshore drilling, completion, and production services to exploration and production companies in the oil and natural gas and geothermal industries in North America and the Middle East. The company operates through Contract Drilling Services and Completion and Production Services segments. The Contract Drilling Services segment offers onshore well drilling services to exploration and production companies in the geothermal, oil and natural gas industry. This segment offers services include land and turnkey drilling; and procurement and distribution of oilfield supplies, as well as manufacture and repair of drilling and service rig equipment. In addition, it operates land drilling rigs in Canada, the United States, and the Middle East, as well as operates AlphaAutomation, AlphaApps, and AlphaAnalytics data services. The company offers EverGreen suite of environmental solutions comprising EverGreenMonitoring, EverGreenEnergy, and EverGreen Fuel Cell. The Completion and Production Services segment provides service rigs for well completion, workover, abandonment, maintenance, and re-entry preparation services; equipment rentals; and camp and catering services to oil and natural gas exploration and production companies. This segment operates well completion and workover service rigs in Canada and the United States. Precision Drilling Corporation was founded in 1951 and is headquartered in Calgary, Canada.