Patterson-UTI Energy (NASDAQ:PTEN – Get Free Report) and National Energy Services Reunited (NASDAQ:NESR – Get Free Report) are both mid-cap energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, risk, dividends, earnings and valuation.
Insider & Institutional Ownership
97.9% of Patterson-UTI Energy shares are held by institutional investors. Comparatively, 15.5% of National Energy Services Reunited shares are held by institutional investors. 2.2% of Patterson-UTI Energy shares are held by company insiders. Comparatively, 9.7% of National Energy Services Reunited shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Patterson-UTI Energy and National Energy Services Reunited”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Patterson-UTI Energy | $4.83 billion | 0.89 | -$93.64 million | ($0.23) | -49.17 |
| National Energy Services Reunited | $1.32 billion | 1.74 | $51.13 million | $0.92 | 24.76 |
National Energy Services Reunited has lower revenue, but higher earnings than Patterson-UTI Energy. Patterson-UTI Energy is trading at a lower price-to-earnings ratio than National Energy Services Reunited, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Patterson-UTI Energy has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500. Comparatively, National Energy Services Reunited has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500.
Profitability
This table compares Patterson-UTI Energy and National Energy Services Reunited’s 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% |
| National Energy Services Reunited | 5.77% | 12.07% | 6.22% |
Analyst Ratings
This is a summary of current ratings and target prices for Patterson-UTI Energy and National Energy Services Reunited, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Patterson-UTI Energy | 0 | 7 | 9 | 0 | 2.56 |
| National Energy Services Reunited | 0 | 1 | 9 | 0 | 2.90 |
Patterson-UTI Energy currently has a consensus price target of $13.14, indicating a potential upside of 16.15%. National Energy Services Reunited has a consensus price target of $40.88, indicating a potential upside of 79.43%. Given National Energy Services Reunited’s stronger consensus rating and higher probable upside, analysts clearly believe National Energy Services Reunited is more favorable than Patterson-UTI Energy.
Summary
National Energy Services Reunited beats Patterson-UTI Energy on 10 of the 13 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 National Energy Services Reunited
National Energy Services Reunited Corp. provides oilfield services in the Middle East and North Africa region. The company’s Production Services segment offers hydraulic fracturing services; coiled tubing services, including nitrogen lifting, fishing, milling, clean-out, scale removal, and other well applications; stimulation and pumping services; primary and remedial cementing services; nitrogen services; filtration services, as well as frac tanks and pumping units; and pipeline and industrial services, such as water filling and hydro testing, nitrogen purging, and de-gassing and pressure testing, as well as cutting/welding and cooling down piping/vessels systems. This segment also provides production assurance chemicals; integrated project management projects; artificial lift services; and surface and subsurface safety systems, high-pressure packer systems, flow controls, service tools, expandable liner technology, vacuum insulated tubing technology for steam applications, and engineering capabilities with manufacturing capacity and testing facilities, as well as sources and treats water for oil and gas, municipal, and industrial use. Its Drilling and Evaluation Services segment offers drilling and workover rigs; rigs and integrated services; fishing and remediation solutions; directional and turbines drilling; drilling fluid systems and related technologies; wireline logging; slickline services for removal of scale, wax and sand build-up, setting plugs, changing out gas lift valves, and fishing and other well applications; and well testing services to measure solids, gas, and oil and water produced from well, as well as rents drilling tools. This segment also provides oilfield solutions for thru-tubing intervention; tubular running services; and a range of wellhead products, flow control equipment, and frac equipment. National Energy Services Reunited Corp. was incorporated in 2017 and is headquartered in Houston, Texas.
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