Comparing Precision Drilling Corporation (PDS) and Its Rivals

Precision Drilling Corporation (NYSE: PDS) is one of 19 public companies in the “Oil & Gas Drilling” industry, but how does it weigh in compared to its peers? We will compare Precision Drilling Corporation to similar companies based on the strength of its institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.

Valuation and Earnings

This table compares Precision Drilling Corporation and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Precision Drilling Corporation $718.34 million -$117.47 million -9.77
Precision Drilling Corporation Competitors $1.65 billion -$44.58 million 3.06

Precision Drilling Corporation’s peers have higher revenue and earnings than Precision Drilling Corporation. Precision Drilling Corporation is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

59.7% of Precision Drilling Corporation shares are owned by institutional investors. Comparatively, 74.8% of shares of all “Oil & Gas Drilling” companies are owned by institutional investors. 1.0% of Precision Drilling Corporation shares are owned by company insiders. Comparatively, 2.2% of shares of all “Oil & Gas Drilling” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Precision Drilling Corporation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Precision Drilling Corporation -9.45% -5.93% -2.73%
Precision Drilling Corporation Competitors -25.96% -8.49% -2.67%

Risk and Volatility

Precision Drilling Corporation has a beta of 1.79, meaning that its stock price is 79% more volatile than the S&P 500. Comparatively, Precision Drilling Corporation’s peers have a beta of 1.97, meaning that their average stock price is 97% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Precision Drilling Corporation and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Precision Drilling Corporation 0 6 7 1 2.64
Precision Drilling Corporation Competitors 495 1546 1253 57 2.26

Precision Drilling Corporation presently has a consensus target price of $5.04, suggesting a potential upside of 66.25%. As a group, “Oil & Gas Drilling” companies have a potential upside of 20.30%. Given Precision Drilling Corporation’s stronger consensus rating and higher possible upside, analysts clearly believe Precision Drilling Corporation is more favorable than its peers.

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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