Precision Drilling (NYSE:PDS) and N Atl DRILLING/SH NEW (OTCMKTS:NADLQ) are both small-cap oils/energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, dividends, risk and earnings.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Precision Drilling and N Atl DRILLING/SH NEW, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Precision Drilling 1 1 8 0 2.70
N Atl DRILLING/SH NEW 0 0 0 0 N/A

Precision Drilling presently has a consensus target price of $4.56, suggesting a potential upside of 121.48%.

Volatility and Risk

Precision Drilling has a beta of 2.15, indicating that its share price is 115% more volatile than the S&P 500. Comparatively, N Atl DRILLING/SH NEW has a beta of 1.98, indicating that its share price is 98% more volatile than the S&P 500.

Earnings and Valuation

This table compares Precision Drilling and N Atl DRILLING/SH NEW’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Precision Drilling $1.04 billion 0.58 -$101.85 million ($0.28) -7.36
N Atl DRILLING/SH NEW $257.50 million 0.00 -$297.70 million N/A N/A

Precision Drilling has higher revenue and earnings than N Atl DRILLING/SH NEW.

Insider and Institutional Ownership

48.7% of Precision Drilling shares are held by institutional investors. 1.0% of Precision Drilling shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Precision Drilling and N Atl DRILLING/SH NEW’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Precision Drilling -9.77% -6.59% -3.03%
N Atl DRILLING/SH NEW N/A N/A N/A

Summary

Precision Drilling beats N Atl DRILLING/SH NEW on 6 of the 9 factors compared between the two stocks.

About Precision Drilling

Precision Drilling Corporation provides oil and natural gas drilling and related services and products. The company operates in two segments, Contract Drilling Services, and Completion and Production Services. The Contract Drilling Services segment offers onshore well drilling services to exploration and production companies in the oil and natural gas industry. This segment's services include land drilling, directional drilling, and turnkey drilling; and procurement and distribution of oilfield supplies, as well as manufacture and refurbishment of drilling and service rig equipment. As of December 31, 2016, this segment operated 255 land drilling rigs, including 135 in Canada; 103 in the United States; 5 in Mexico; 4 in Saudi Arabia; 5 in Kuwait; 2 in the Kurdistan region of Iraq; and 1 in the country of Georgia. The Completion and Production Services segment offers completion and workover services, and ancillary services to oil and natural gas exploration and production companies. It provides service rigs for well completion, workover, abandonment, maintenance, and re-entry preparation services; snubbing units for pressure control services; camp and catering services; and water system services. This segment also engages in the rental of oilfield surface equipment, and wellsite accommodations. This segment operated 196 well completion and workover service rigs, and 11 snubbing units in Canada and the United States; approximately 2,200 oilfield rental items, including surface storage, small-flow wastewater treatment, and power generation and solids control equipment; and 132 wellsite accommodation units in Canada. It also had 43 drilling camps and 4 base camps in Canada; and 10 large-flow wastewater treatment units, 24 pump houses, and 8 potable water production units in Canada. Precision Drilling Corporation was founded in 1951 and is headquartered in Calgary, Canada.

About N Atl DRILLING/SH NEW

North Atlantic Drilling Ltd. operates as an offshore drilling contractor in the North Atlantic region. The company provides harsh environment offshore drilling services to the oil and gas industry primarily in Norway, the United Kingdom, Ireland, Denmark, the Netherlands, the east coast of Greenland, Russia, the Baltic Sea, and the Gulf of Bothnia. As of December 31, 2017, it owned seven offshore drilling rigs, including three semi-submersibles, one drillship, and three jack-up rigs. The company was founded in 2011 and is headquartered in Hamilton, Bermuda. North Atlantic Drilling Ltd. is a subsidiary of Seadrill Limited. On September 12, 2017, North Atlantic Drilling Ltd. filed a voluntary petition for reorganization under Chapter 11 in the US Bankruptcy Court for the Southern District of Texas. It is in joint administration with Seadrill Limited.

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