Mammooth Energy (NASDAQ: TUSK) and Precision Drilling Corporation (NYSE:PDS) are both small-cap oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, risk, institutional ownership, profitability, analyst recommendations and valuation.
Valuation & Earnings
This table compares Mammooth Energy and Precision Drilling Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Mammooth Energy||$302.48 million||1.68||$53.64 million||($1.81)||-6.32|
|Precision Drilling Corporation||$882.25 million||0.98||$196.60 million||($0.35)||-8.43|
Precision Drilling Corporation has higher revenue and earnings than Mammooth Energy. Precision Drilling Corporation is trading at a lower price-to-earnings ratio than Mammooth Energy, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
63.2% of Mammooth Energy shares are held by institutional investors. Comparatively, 63.2% of Precision Drilling Corporation shares are held by institutional investors. 0.0% of Mammooth Energy shares are held by insiders. Comparatively, 1.0% of Precision Drilling Corporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
This is a summary of current ratings and price targets for Mammooth Energy and Precision Drilling Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Precision Drilling Corporation||0||6||9||1||2.69|
Mammooth Energy presently has a consensus target price of $23.44, suggesting a potential upside of 104.93%. Precision Drilling Corporation has a consensus target price of $6.28, suggesting a potential upside of 112.88%. Given Precision Drilling Corporation’s higher possible upside, analysts plainly believe Precision Drilling Corporation is more favorable than Mammooth Energy.
This table compares Mammooth Energy and Precision Drilling Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Precision Drilling Corporation||-12.38%||-7.10%||-3.22%|
Precision Drilling Corporation beats Mammooth Energy on 7 of the 11 factors compared between the two stocks.
Mammooth Energy Company Profile
Mammoth Energy Services, Inc. is an integrated oilfield service company. The Company is engaged in the exploration and development of North American onshore unconventional oil and natural gas reserves. The Company’s segments include Contract Land and Directional Drilling Services; Completion and Production Services; Natural Sand Proppant Services, and Remote Accommodation Services. Its Completion and Production Services division provides pressure pumping services, pressure control Services, flowback services and equipment rentals. Its Natural Sand Proppant Services division is engaged in selling, distributing and producing proppant for hydraulic fracturing. Its Contract Land and Directional Drilling Services division provides drilling rigs and crews for operators, as well as rental equipment. Its Remote Accommodation Services division provides housing, kitchen and dining, and recreational service facilities for oilfield workers located in remote areas.
Precision Drilling Corporation Company Profile
Precision Drilling Corporation (Precision) is an oilfield services company. The Company provides onshore drilling and completion and production services to exploration and production companies in the oil and natural gas industry. The Company operates through two segments: Contract Drilling Services, and Completion and Production Services. The Contract Drilling Services segment operates its rigs in Canada, the United States and internationally. The Completion and Production Services segment provides completion and workover services and ancillary services to oil and natural gas exploration and production companies in Canada and the United States. As of December 31, 2016, the Contract Drilling Services segment consisted of 255 land drilling rigs, including 135 in Canada, 103 in the United States, five in Mexico, four in Saudi Arabia, five in Kuwait, two in the Kurdistan region of Iraq and one in the country of Georgia.
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