Critical Survey: Drilling Tools International (DTI) versus Its Rivals

Drilling Tools International (NASDAQ:DTI) is one of 23 publicly-traded companies in the “Oil & gas field machinery” industry, but how does it compare to its rivals? We will compare Drilling Tools International to similar businesses based on the strength of its risk, valuation, analyst recommendations, earnings, profitability, dividends and institutional ownership.

Volatility and Risk

Drilling Tools International has a beta of -0.96, indicating that its stock price is 196% less volatile than the S&P 500. Comparatively, Drilling Tools International’s rivals have a beta of 1.66, indicating that their average stock price is 66% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Drilling Tools International and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Drilling Tools International	0	1	0	0	2.00
Drilling Tools International Competitors	166	1362	1566	44	2.47

Drilling Tools International presently has a consensus price target of $3.00, suggesting a potential downside of 48.89%. As a group, “Oil & gas field machinery” companies have a potential upside of 25.24%. Given Drilling Tools International’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Drilling Tools International has less favorable growth aspects than its rivals.

Profitability

This table compares Drilling Tools International and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Drilling Tools International	8.21%	14.88%	9.04%
Drilling Tools International Competitors	3.87%	7.86%	4.80%

Valuation & Earnings

This table compares Drilling Tools International and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Drilling Tools International	$152.03 million	$14.75 million	13.65
Drilling Tools International Competitors	$4.60 billion	-$174.24 million	5.80

Drilling Tools International’s rivals have higher revenue, but lower earnings than Drilling Tools International. Drilling Tools International is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Insider & Institutional Ownership

2.8% of Drilling Tools International shares are owned by institutional investors. Comparatively, 73.6% of shares of all “Oil & gas field machinery” companies are owned by institutional investors. 14.7% of Drilling Tools International shares are owned by company insiders. Comparatively, 10.3% of shares of all “Oil & gas field machinery” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Drilling Tools International rivals beat Drilling Tools International on 7 of the 13 factors compared.

Drilling Tools International Company Profile

Drilling Tools International Corporation provides oilfield equipment and services to oil and natural gas sectors in North America, Europe, and the Middle East. It offers downhole tool rentals, machining, and inspection services to support the global drilling and wellbore construction industry. The company also provides products are bottom hole assembly components, such as stabilizers, subs, non-magnetic and steel drill collars, hole openers, and roller reamers, as well as drill pipe and drill pipe accessories; ancillary equipment and handling tools to support its rental platform, including float valves, ring gauges, tool baskets, lift bail, lift subs, mud magnets, elevators, bracket and bail assemblies, slips, tongs, stabbing guides and safety clamps; and blowout preventers, and pressure control accessory equipment. In addition, it offers tool rental services, which consists of rental, inspection, machining, and repair services; rents downhole drilling tools used in horizontal and directional drilling of oil and natural gas; rents kellys, pip joints, work strings; maintains a fleet of rental equipment consisting of drill collars, stabilizers, crossover subs, wellbore conditioning tools, drill pipe, hevi-wate drill pipe, and tubing; rents surface control equipment, such as blowout preventers and handling tools; and provides downhole products for producing wells. Drilling Tools International Corporation is headquartered in Houston, Texas.