Helmerich & Payne (NYSE: HP) and Pioneer Energy Services Corp. (NYSE:PES) are both oils/energy companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, earnings, institutional ownership and dividends.
Risk & Volatility
Helmerich & Payne has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500. Comparatively, Pioneer Energy Services Corp. has a beta of 2.92, suggesting that its stock price is 192% more volatile than the S&P 500.
Helmerich & Payne pays an annual dividend of $2.80 per share and has a dividend yield of 5.6%. Pioneer Energy Services Corp. does not pay a dividend. Helmerich & Payne pays out -167.7% of its earnings in the form of a dividend. Pioneer Energy Services Corp. has increased its dividend for 44 consecutive years.
This table compares Helmerich & Payne and Pioneer Energy Services Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Helmerich & Payne||-11.19%||-3.37%||-2.24%|
|Pioneer Energy Services Corp.||-33.86%||-28.63%||-10.36%|
Valuation and Earnings
This table compares Helmerich & Payne and Pioneer Energy Services Corp.’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Helmerich & Payne||$1.60 billion||3.38||$373.98 million||($1.67)||-29.80|
|Pioneer Energy Services Corp.||$342.72 million||0.48||$20.01 million||($1.65)||-1.29|
Helmerich & Payne has higher revenue and earnings than Pioneer Energy Services Corp.. Helmerich & Payne is trading at a lower price-to-earnings ratio than Pioneer Energy Services Corp., indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
74.0% of Pioneer Energy Services Corp. shares are owned by institutional investors. 3.9% of Helmerich & Payne shares are owned by insiders. Comparatively, 6.1% of Pioneer Energy Services Corp. shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This is a breakdown of recent ratings and recommmendations for Helmerich & Payne and Pioneer Energy Services Corp., as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Helmerich & Payne||7||11||5||0||1.91|
|Pioneer Energy Services Corp.||0||4||6||0||2.60|
Helmerich & Payne currently has a consensus price target of $57.15, suggesting a potential upside of 14.83%. Pioneer Energy Services Corp. has a consensus price target of $5.53, suggesting a potential upside of 160.29%. Given Pioneer Energy Services Corp.’s stronger consensus rating and higher possible upside, analysts plainly believe Pioneer Energy Services Corp. is more favorable than Helmerich & Payne.
Helmerich & Payne Company Profile
Helmerich & Payne, Inc. is engaged in contract drilling of oil and gas wells for others. The Company operates in the contract drilling industry. The Company’s contract drilling business consists of three segments: U.S. Land, Offshore and International Land. The Company is also engaged in the ownership, development and operation of commercial real estate and the research and development of rotary steerable technology. Its real estate investments are located within Tulsa, Oklahoma, and include a shopping center containing approximately 441,000 leasable square feet, multi-tenant industrial warehouse properties containing approximately one million leasable square feet and approximately 210 acres of undeveloped real estate. The Company provides drilling rigs, equipment, personnel and camps on a contract basis. The Company’s subsidiaries include Helmerich & Payne International Drilling Co. and Helmerich & Payne de Venezuela, C.A.
Pioneer Energy Services Corp. Company Profile
Pioneer Energy Services Corp. provides land-based drilling services and production services to a group of independent oil and gas exploration and production companies in the United States and internationally in Colombia. The Company operates through two segments, which include drilling services segment and production services segment. It also provides two of its services (coiled tubing and wireline services) offshore in the Gulf of Mexico. Its drilling services segment provides contract land drilling services to a group of exploration and production companies through the Company’s four drilling divisions in the United States, and internationally in Colombia. Its production services segment provides a range of services to a group of exploration and production companies, with its operations concentrated in the various United States onshore oil and gas producing regions in the Mid-Continent and Rocky Mountain states and in the Gulf Coast.
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