Exterran Partners (NYSE: USAC) and Pioneer Energy Services (NYSE:PES) are both small-cap oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.
Insider & Institutional Ownership
73.5% of Pioneer Energy Services shares are owned by institutional investors. 6.1% of Pioneer Energy Services 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.
This table compares Exterran Partners and Pioneer Energy Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Pioneer Energy Services||-16.83%||-23.31%||-7.47%|
Volatility and Risk
Exterran Partners has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500. Comparatively, Pioneer Energy Services has a beta of 2.95, indicating that its stock price is 195% more volatile than the S&P 500.
Earnings & Valuation
This table compares Exterran Partners and Pioneer Energy Services’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Exterran Partners||$280.22 million||4.17||$11.44 million||$0.16||117.38|
|Pioneer Energy Services||$446.45 million||0.57||-$75.11 million||($0.70)||-4.66|
Exterran Partners has higher earnings, but lower revenue than Pioneer Energy Services. Pioneer Energy Services is trading at a lower price-to-earnings ratio than Exterran Partners, indicating that it is currently the more affordable of the two stocks.
Exterran Partners pays an annual dividend of $2.10 per share and has a dividend yield of 11.2%. Pioneer Energy Services does not pay a dividend. Exterran Partners pays out 1,312.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a summary of current ratings and recommmendations for Exterran Partners and Pioneer Energy Services, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Pioneer Energy Services||0||4||4||0||2.50|
Exterran Partners presently has a consensus target price of $20.75, suggesting a potential upside of 10.49%. Pioneer Energy Services has a consensus target price of $3.55, suggesting a potential upside of 8.90%. Given Exterran Partners’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Exterran Partners is more favorable than Pioneer Energy Services.
Exterran Partners beats Pioneer Energy Services on 10 of the 16 factors compared between the two stocks.
About Exterran Partners
USA Compression Partners, LP is an independent provider of compression services in the United States. The Company provides compression services to its customers primarily in connection with infrastructure applications, including both allowing for the processing and transportation of natural gas through the domestic pipeline system and managing crude oil production through artificial lift processes. The Company engineers, designs, operates, services and repairs its compression units, and maintains related support inventory and equipment. It provides compression services in mature conventional basins, including gas lift applications on crude oil wells focused by horizontal drilling techniques. The Company provides compression services in various shale plays throughout the United States, including the Utica, Marcellus, Permian Basin, Delaware Basin, Eagle Ford, Mississippi Lime, Granite Wash, Woodford, Barnett, Haynesville, Niobrara and Fayetteville shales.
About Pioneer Energy Services
Pioneer Energy Services Corp. provides land-based drilling and production services to oil and gas exploration and production companies in the United States and Colombia. The company offers contract land drilling services in the Marcellus/Utica, Eagle Ford, Permian Basin, and Bakken regions, as well as in Colombia. It operates a fleet of 16 AC rigs in the United States and 8 SCR rigs in Colombia. The company also provides well servicing, wireline services, and coiled tubing services to exploration and production companies in the onshore oil and gas producing regions in the Mid-Continent and Rocky Mountain states; and in the onshore and offshore Gulf Coast. As of December 31, 2017, it operated a fleet of 113 rigs with 550 horsepower and 12 rigs with 600 horsepower; 112 wireline units; and 10 onshore and 4 offshore coiled tubing units. The company was formerly known as Pioneer Drilling Company and changed its name to Pioneer Energy Services Corp. in 2012. Pioneer Energy Services Corp. was founded in 1968 and is based in San Antonio, Texas.
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