Critical Comparison: STEP Energy Services (OTCMKTS:SNVVF) vs. Precision Drilling (NYSE:PDS)

Precision Drilling (NYSE:PDS) and STEP Energy Services (OTCMKTS:SNVVF) are both energy companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Earnings & Valuation

This table compares Precision Drilling and STEP Energy Services”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Precision Drilling	$1.32 billion	0.85	$1.32 million	($2.09)	-41.74
STEP Energy Services	N/A	N/A	N/A	N/A	N/A

Precision Drilling has higher revenue and earnings than STEP Energy Services.

Profitability

This table compares Precision Drilling and STEP Energy Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Precision Drilling	-1.68%	2.11%	1.24%
STEP Energy Services	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and price targets for Precision Drilling and STEP Energy Services, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Precision Drilling	2	1	4	1	2.50
STEP Energy Services	0	1	0	0	2.00

Precision Drilling presently has a consensus price target of $122.33, suggesting a potential upside of 40.22%. Given Precision Drilling’s stronger consensus rating and higher probable upside, equities analysts plainly believe Precision Drilling is more favorable than STEP Energy Services.

Insider & Institutional Ownership

48.9% of Precision Drilling shares are owned by institutional investors. 0.9% of Precision Drilling shares are owned by company 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.

Summary

Precision Drilling beats STEP Energy Services on 9 of the 10 factors compared between the two stocks.

About Precision Drilling

Precision Drilling Corporation, a drilling company, provides onshore drilling, completion, and production services to exploration and production companies in the oil and natural gas and geothermal industries in North America and the Middle East. The company operates through Contract Drilling Services and Completion and Production Services segments. The Contract Drilling Services segment offers onshore well drilling services to exploration and production companies in the geothermal, oil and natural gas industry. This segment offers services include land and turnkey drilling; and procurement and distribution of oilfield supplies, as well as manufacture and repair of drilling and service rig equipment. In addition, it operates land drilling rigs in Canada, the United States, and the Middle East, as well as operates AlphaAutomation, AlphaApps, and AlphaAnalytics data services. The company offers EverGreen suite of environmental solutions comprising EverGreenMonitoring, EverGreenEnergy, and EverGreen Fuel Cell. The Completion and Production Services segment provides service rigs for well completion, workover, abandonment, maintenance, and re-entry preparation services; equipment rentals; and camp and catering services to oil and natural gas exploration and production companies. This segment operates well completion and workover service rigs in Canada and the United States. Precision Drilling Corporation was founded in 1951 and is headquartered in Calgary, Canada.

About STEP Energy Services

STEP Energy Services Ltd., an energy services company, provides integrated coiled tubing, fluid and nitrogen pumping, and hydraulic fracturing to service oil and natural gas industry in Canada and the United States. It also provides fluid pumping services for coiled tubing operations and involved in standalone projects; pipeline commissioning and maintenance services; fracturing logistics services; and laboratory services. In addition, the company offers pipeline, facility maintenance, pipeline pigging, and purging services. STEP Energy Services Ltd. was incorporated in 2011 and is headquartered in Calgary, Canada.