Saipem (OTCMKTS:SAPMF – Get Free Report) and Patterson-UTI Energy (NASDAQ:PTEN – Get Free Report) are both mid-cap energy companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, analyst recommendations, profitability, institutional ownership, dividends and valuation.
Valuation & Earnings
This table compares Saipem and Patterson-UTI Energy”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Saipem | $15.75 billion | 0.36 | $331.12 million | N/A | N/A |
| Patterson-UTI Energy | $5.38 billion | 0.42 | -$968.03 million | ($2.76) | -2.11 |
Analyst Ratings
This is a breakdown of recent ratings and price targets for Saipem and Patterson-UTI Energy, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Saipem | 0 | 1 | 0 | 1 | 3.00 |
| Patterson-UTI Energy | 0 | 6 | 5 | 0 | 2.45 |
Patterson-UTI Energy has a consensus target price of $8.27, indicating a potential upside of 42.39%. Given Patterson-UTI Energy’s higher probable upside, analysts plainly believe Patterson-UTI Energy is more favorable than Saipem.
Risk & Volatility
Saipem has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500. Comparatively, Patterson-UTI Energy has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500.
Profitability
This table compares Saipem and Patterson-UTI Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Saipem | N/A | N/A | N/A |
| Patterson-UTI Energy | -21.49% | -1.94% | -1.16% |
Institutional and Insider Ownership
97.9% of Patterson-UTI Energy shares are held by institutional investors. 2.3% of Patterson-UTI Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Summary
Saipem beats Patterson-UTI Energy on 8 of the 13 factors compared between the two stocks.
About Saipem
Saipem SpA provides energy and infrastructure solutions worldwide. The company operates through Asset Based Services, Offshore Drilling, and Energy Carriers segments. It offers development of subsea fields and pipelaying; installation and lifting of offshore structures; and engineering, implementation, installation, maintenance, modification, and decommissioning activities. The company also engages in onshore engineering and construction, sustainable infrastructures, and robotics and industrialized solutions; and offshore engineering and construction, and wind activities. In addition, the company provides procurement, construction, project management, and engineering integrated services to the oil and gas, civil and marine infrastructure, and environmental markets. Saipem S.p.A. was founded in 1957 and is headquartered in Milan, Italy.
About Patterson-UTI Energy
Patterson-UTI Energy, Inc., through its subsidiaries, engages in the provision of contract drilling services to oil and natural gas operators in the United States and internationally. It operates through three segments: Drilling Services, Completion Services, and Drilling Products. The Contract Drilling Services segment provides contract and directional drilling services in onshore oil and natural gas basins, as well as engages in the service and re-certification of equipment for drilling contractors, and provision of electrical controls and automation to the energy, marine and mining industries. The Completion Services segment offers services for hydraulic fracturing, wireline and pumping, completion support, and cementing; and involved in the power solutions natural gas fueling, and logistics and storage businesses. The Drilling Products segment manufactures and distributes drill bits for energy and mining markets. It also provides software and services, such as MWD Survey FDIR, a data analytics technology to analyze MWD survey data in real-time and identify the position of a well; HiFi Nav, which enhances FDIR by targeting improved vertical placement of the directional well within the reservoir; HiFi Guidance, utilizes trajectory optimization to determine optimal steering recommendations and placement within the reservoir; and rents oilfield tools. The company was founded in 1978 and is headquartered in Houston, Texas.
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