Head to Head Review: Solaris Energy Infrastructure (NYSE:SEI) & Precision Drilling (NYSE:PDS)

Precision Drilling (NYSE:PDS) and Solaris Energy Infrastructure (NYSE:SEI) are both energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, earnings, dividends, profitability and analyst recommendations.

Institutional and Insider Ownership

48.9% of Precision Drilling shares are owned by institutional investors. Comparatively, 67.4% of Solaris Energy Infrastructure shares are owned by institutional investors. 0.9% of Precision Drilling shares are owned by insiders. Comparatively, 20.2% of Solaris Energy Infrastructure shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

Precision Drilling has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500. Comparatively, Solaris Energy Infrastructure has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500.

Valuation & Earnings

This table compares Precision Drilling and Solaris Energy Infrastructure”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Precision Drilling	$1.32 billion	0.80	$1.32 million	($2.09)	-40.28
Solaris Energy Infrastructure	$762.18 million	7.64	$30.17 million	$0.85	89.45

Solaris Energy Infrastructure has lower revenue, but higher earnings than Precision Drilling. Precision Drilling is trading at a lower price-to-earnings ratio than Solaris Energy Infrastructure, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Precision Drilling and Solaris Energy Infrastructure’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Precision Drilling	-1.68%	2.11%	1.24%
Solaris Energy Infrastructure	7.19%	13.26%	4.80%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Precision Drilling and Solaris Energy Infrastructure, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Precision Drilling	1	2	4	1	2.62
Solaris Energy Infrastructure	0	2	10	0	2.83

Precision Drilling presently has a consensus price target of $122.33, indicating a potential upside of 45.32%. Solaris Energy Infrastructure has a consensus price target of $94.17, indicating a potential upside of 23.85%. Given Precision Drilling’s higher possible upside, equities research analysts plainly believe Precision Drilling is more favorable than Solaris Energy Infrastructure.

Summary

Solaris Energy Infrastructure beats Precision Drilling on 12 of the 15 factors compared between the two stocks.

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.

About Solaris Energy Infrastructure

Solaris Energy Infrastructure, Inc. is a holding company, which engages in the manufacture of patented mobile proppant management systems that unload, store, and deliver proppant to oil and natural gas well sites. Its products include Mobile Proppant and Mobile Chemical Management Systems, and Inventory Management Software. The firm’s services include field, last mile management, and transloading services. The company was founded by William A. Zartler in 2014 and is headquartered in Houston, TX.