Critical Comparison: Propetro (PUMP) and The Competition

Propetro (NYSE: PUMP) is one of 33 public companies in the “Oil & gas field services, not elsewhere classified” industry, but how does it contrast to its peers? We will compare Propetro to similar companies based on the strength of its valuation, earnings, analyst recommendations, institutional ownership, profitability, dividends and risk.

Insider & Institutional Ownership

65.1% of shares of all “Oil & gas field services, not elsewhere classified” companies are owned by institutional investors. 5.0% of Propetro shares are owned by company insiders. Comparatively, 9.4% of shares of all “Oil & gas field services, not elsewhere classified” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and recommmendations for Propetro and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Propetro 0 0 0 0 N/A
Propetro Competitors 356 1469 2010 88 2.47

As a group, “Oil & gas field services, not elsewhere classified” companies have a potential upside of 59.30%. Given Propetro’s peers higher probable upside, analysts plainly believe Propetro has less favorable growth aspects than its peers.

Profitability

This table compares Propetro and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Propetro 8.30% 27.91% 15.42%
Propetro Competitors -4.25% 0.07% 2.23%

Volatility & Risk

Propetro has a beta of 1.7, suggesting that its stock price is 70% more volatile than the S&P 500. Comparatively, Propetro’s peers have a beta of 1.89, suggesting that their average stock price is 89% more volatile than the S&P 500.

Earnings and Valuation

This table compares Propetro and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Propetro $981.86 million $12.61 million 114.44
Propetro Competitors $3.93 billion $291.84 million 11.23

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

Summary

Propetro peers beat Propetro on 6 of the 10 factors compared.

Propetro Company Profile

ProPetro Holding Corp., an oilfield services company, provides pressure pumping and other related services. The company offers hydraulic fracturing services; and a suite of well completion and production services, including cementing, acidizing, coiled tubing, flowback, surface air drilling, and drilling services. It serves the upstream oil and gas companies engaged in the exploration and production of North American unconventional oil and natural gas resources in the Permian Basin. The company's fleet consists of 18 hydraulic fracturing units with 780,000 hydraulic horsepower. ProPetro Holding Corp. was founded in 2005 and is headquartered in Midland, Texas.

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