Petrofac (OTCMKTS:POFCY) versus Drilling Tools International (NASDAQ:DTI) Critical Contrast

Drilling Tools International (NASDAQ:DTI) and Petrofac (OTCMKTS:POFCY) are both small-cap energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Drilling Tools International	-3.93%	1.12%	0.60%
Petrofac	N/A	N/A	N/A

Institutional & Insider Ownership

2.8% of Drilling Tools International shares are held by institutional investors. 56.5% of Drilling Tools 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.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Drilling Tools International	$154.45 million	0.55	$3.01 million	($0.19)	-12.74
Petrofac	$2.50 billion	0.00	-$505.00 million	N/A	N/A

Drilling Tools International has higher earnings, but lower revenue than Petrofac.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Drilling Tools International and Petrofac, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Drilling Tools International	1	0	0	1	2.50
Petrofac	0	0	0	0	0.00

Risk & Volatility

Drilling Tools International has a beta of -0.38, suggesting that its stock price is 138% less volatile than the S&P 500. Comparatively, Petrofac has a beta of 2.79, suggesting that its stock price is 179% more volatile than the S&P 500.

Summary

Drilling Tools International beats Petrofac on 8 of the 11 factors compared between the two stocks.

About Drilling Tools International

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.

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.