Contrasting ProPetro (NYSE:PUMP) and Petrofac (OTCMKTS:POFCY)

Petrofac (OTCMKTS:POFCY) and ProPetro (NYSE:PUMP) are both small-cap energy companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, earnings, dividends, profitability, valuation and risk.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Petrofac and ProPetro, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Petrofac	0	0	0	0	0.00
ProPetro	1	4	4	0	2.33

ProPetro has a consensus target price of $12.50, indicating a potential upside of 32.81%. Given ProPetro’s stronger consensus rating and higher possible upside, analysts clearly believe ProPetro is more favorable than Petrofac.

Profitability

This table compares Petrofac and ProPetro’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Petrofac	N/A	N/A	N/A
ProPetro	-1.31%	-0.06%	-0.04%

Valuation and Earnings

This table compares Petrofac and ProPetro”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Petrofac	$2.50 billion	0.00	-$505.00 million	N/A	N/A
ProPetro	$1.44 billion	0.68	-$137.86 million	($0.17)	-55.36

ProPetro has lower revenue, but higher earnings than Petrofac.

Volatility and Risk

Petrofac has a beta of 2.88, suggesting that its stock price is 188% more volatile than the S&P 500. Comparatively, ProPetro has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500.

Institutional and Insider Ownership

84.7% of ProPetro shares are held by institutional investors. 1.6% of ProPetro shares are held by 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.

Summary

ProPetro beats Petrofac on 7 of the 12 factors compared between the two stocks.

About Petrofac

Petrofac Limited designs, builds, manages, and maintains infrastructure for the energy industries in the United Kingdom, Algeria, Thailand, Oman, Kuwait, Iraq, the United Arab Emirates, the Netherlands, and internationally. It operates through three segments: Engineering & Construction (E&C); Asset Solutions; and Integrated Energy Services (IES). The E&C segment provides onshore and offshore engineering, procurement, construction, installation, and commissioning services. The Asset Solutions segment offers concept, feasibility, and front-end engineering design services, as well as manages and maintains onshore and offshore operations. The IES segment focuses on delivering value from the existing asset portfolio. The company was founded in 1981 and is based in St Helier, Jersey.

About ProPetro

ProPetro Holding Corp. operates as an integrated oilfield services company. The company provides hydraulic fracturing, wireline, cementing, and other complementary oilfield completion services to upstream oil and gas companies in the Permian Basin. ProPetro Holding Corp. was founded in 2007 and is headquartered in Midland, Texas.