Patterson-UTI Energy (NASDAQ:PTEN – Get Free Report) and KLX Energy Services (NASDAQ:KLXE – Get Free Report) are both energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.
Risk & Volatility
Patterson-UTI Energy has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500. Comparatively, KLX Energy Services has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500.
Insider and Institutional Ownership
97.9% of Patterson-UTI Energy shares are held by institutional investors. Comparatively, 42.7% of KLX Energy Services shares are held by institutional investors. 2.2% of Patterson-UTI Energy shares are held by company insiders. Comparatively, 5.4% of KLX Energy Services shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Patterson-UTI Energy | $4.83 billion | 0.98 | -$93.64 million | ($0.23) | -53.65 |
| KLX Energy Services | $636.60 million | 0.05 | -$77.10 million | ($3.16) | -0.50 |
KLX Energy Services has lower revenue, but higher earnings than Patterson-UTI Energy. Patterson-UTI Energy is trading at a lower price-to-earnings ratio than KLX Energy Services, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and price targets for Patterson-UTI Energy and KLX Energy Services, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Patterson-UTI Energy | 1 | 4 | 9 | 1 | 2.67 |
| KLX Energy Services | 1 | 1 | 0 | 0 | 1.50 |
Patterson-UTI Energy presently has a consensus target price of $12.95, suggesting a potential upside of 4.94%. Given Patterson-UTI Energy’s stronger consensus rating and higher possible upside, equities analysts clearly believe Patterson-UTI Energy is more favorable than KLX Energy Services.
Profitability
This table compares Patterson-UTI Energy and KLX Energy Services’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Patterson-UTI Energy | -1.92% | -1.68% | -0.98% |
| KLX Energy Services | -9.71% | N/A | -18.46% |
Summary
Patterson-UTI Energy beats KLX Energy Services on 10 of the 15 factors compared between the two stocks.
About Patterson-UTI Energy
Patterson-UTI Energy, Inc., through its subsidiaries, engages in the provision of contract drilling services to oil and natural gas operators in the United States and internationally. It operates through three segments: Drilling Services, Completion Services, and Drilling Products. The Contract Drilling Services segment provides contract and directional drilling services in onshore oil and natural gas basins, as well as engages in the service and re-certification of equipment for drilling contractors, and provision of electrical controls and automation to the energy, marine and mining industries. The Completion Services segment offers services for hydraulic fracturing, wireline and pumping, completion support, and cementing; and involved in the power solutions natural gas fueling, and logistics and storage businesses. The Drilling Products segment manufactures and distributes drill bits for energy and mining markets. It also provides software and services, such as MWD Survey FDIR, a data analytics technology to analyze MWD survey data in real-time and identify the position of a well; HiFi Nav, which enhances FDIR by targeting improved vertical placement of the directional well within the reservoir; HiFi Guidance, utilizes trajectory optimization to determine optimal steering recommendations and placement within the reservoir; and rents oilfield tools. The company was founded in 1978 and is headquartered in Houston, Texas.
About KLX Energy Services
KLX Energy Services Holdings, Inc. provides drilling, completions, production, and well intervention services and products to the onshore oil and gas producing regions of the United States. The company operates through three segments: Southwest, Rocky Mountains, and Northeast/Mid-Con. It provides directional drilling services; downhole navigational and rental tools businesses and support services, including well planning, site supervision, accommodation rentals, and other drilling rentals; and various technologies, including gamma ray, azimuthal gamma ray, real-time continuous inclination and azimuth, rotary steerable, pressure-while-drilling, mode shifting, stick-slip and destructive dynamics, dynamic sequencing and real-time shock, and vibration modules. The company also offers coiled tubing and nitrogen services; wireline services, including pump down perforating, logging, and pipe recover; pressure control products and services; wellhead and hydraulic fracturing rental products and services; flowback and testing services; thru-tubing technologies and services; rig assist snubbing services; cementing products and services; acidizing and pressure pumping services; and downhole completion tools, such as toe sleeves, wet shoe cementing bypass subs, composite plugs, dissolvable plugs, liner hangers, stage cementing tools, inflatables, float and casing equipment, and retrievable completion tools. In addition, it provides production services comprising maintenance-related intervention services; production blow out preventers; mechanical wireline services; slick line services; hydro-testing services; premium tubulars; and other specialized production tools. Further, the company provides intervention services consisting of technicians and equipment that are focused on providing customers engineered solutions to downhole complications. KLX Energy Services Holdings, Inc. was incorporated in 2018 and is headquartered in Houston, Texas.
Receive News & Ratings for Patterson-UTI Energy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Patterson-UTI Energy and related companies with MarketBeat.com's FREE daily email newsletter.
