Precision Drilling (NYSE:PDS – Get Free Report) and Oceaneering International (NYSE:OII – Get Free Report) are both energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, profitability, valuation, dividends and risk.
Volatility & Risk
Precision Drilling has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500. Comparatively, Oceaneering International has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Precision Drilling and Oceaneering International, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Precision Drilling | 2 | 1 | 4 | 1 | 2.50 |
| Oceaneering International | 0 | 4 | 1 | 0 | 2.20 |
Insider and Institutional Ownership
48.9% of Precision Drilling shares are held by institutional investors. Comparatively, 93.9% of Oceaneering International shares are held by institutional investors. 0.9% of Precision Drilling shares are held by company insiders. Comparatively, 1.3% of Oceaneering International shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Precision Drilling and Oceaneering International”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Precision Drilling | $1.92 billion | 0.54 | $1.32 million | ($2.09) | -39.19 |
| Oceaneering International | $2.78 billion | 1.65 | $353.76 million | $3.48 | 13.30 |
Oceaneering International has higher revenue and earnings than Precision Drilling. Precision Drilling is trading at a lower price-to-earnings ratio than Oceaneering International, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Precision Drilling and Oceaneering International’s 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% |
| Oceaneering International | 12.19% | 18.40% | 7.46% |
Summary
Oceaneering International beats Precision Drilling on 11 of the 15 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 Oceaneering International
Oceaneering International, Inc. provides engineered services and products, and robotic solutions to the offshore energy, defense, aerospace, manufacturing, and entertainment industries worldwide. It operates through Subsea Robotics, Manufactured Products, Offshore Projects Group, Integrity Management & Digital Solutions, and Aerospace and Defense Technologies segments. The company offers remotely operated vehicles (ROVs) for drill support and vessel-based services, including subsea hardware installation, construction, pipeline inspection, survey and facilities inspection, maintenance, and repair; ROV tooling; and survey services, such as hydrographic survey, positioning services, and autonomous underwater vehicles for geoscience. It also provides distribution and connection systems, including production control umbilicals and field development hardware, pipeline connection, and repair systems to the energy industry; and autonomous mobile robotic technology and entertainment systems to various industries. In addition, the company offers subsea installation and intervention, including riserless light well intervention inspection, maintenance, and repair services; installation and workover control systems, and ROV workover control systems; diving services; project management and engineering; and drill pipe riser services and systems, and wellhead load relief solutions. Further, it provides asset integrity management, software and analytical solutions for the bulk cargo maritime industry, and software, digital, and connectivity solutions for the energy industry, as well as government services and products, including engineering and related manufacturing in defense and space exploration activities to the United States' government agencies and their prime contractors. Oceaneering International, Inc. was founded in 1964 and is headquartered in Houston, Texas.
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