Western Energy Services (OTCMKTS:WEEEF) and Helmerich & Payne (NYSE:HP) are both oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, risk, dividends, institutional ownership and profitability.
Institutional and Insider Ownership
90.7% of Helmerich & Payne shares are held by institutional investors. 4.1% of Helmerich & Payne shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Western Energy Services has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500. Comparatively, Helmerich & Payne has a beta of 1.42, meaning that its stock price is 42% more volatile than the S&P 500.
This is a breakdown of recent ratings for Western Energy Services and Helmerich & Payne, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Western Energy Services||0||0||0||0||N/A|
|Helmerich & Payne||2||9||11||0||2.41|
Helmerich & Payne has a consensus price target of $71.88, suggesting a potential upside of 34.54%. Given Helmerich & Payne’s higher probable upside, analysts clearly believe Helmerich & Payne is more favorable than Western Energy Services.
Helmerich & Payne pays an annual dividend of $2.84 per share and has a dividend yield of 5.3%. Western Energy Services does not pay a dividend. Helmerich & Payne pays out 2,028.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Helmerich & Payne has increased its dividend for 46 consecutive years.
This table compares Western Energy Services and Helmerich & Payne’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Western Energy Services||-15.16%||-9.61%||-5.12%|
|Helmerich & Payne||19.41%||0.41%||0.29%|
Valuation & Earnings
This table compares Western Energy Services and Helmerich & Payne’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Western Energy Services||$183.65 million||0.17||-$28.94 million||N/A||N/A|
|Helmerich & Payne||$2.49 billion||2.34||$482.67 million||$0.14||381.64|
Helmerich & Payne has higher revenue and earnings than Western Energy Services.
Helmerich & Payne beats Western Energy Services on 13 of the 14 factors compared between the two stocks.
Western Energy Services Company Profile
Western Energy Services Corp. operates as an oilfield service company in Canada and the United States. The company operates through Contract Drilling and Production Services segments. The Contract Drilling segment operates drilling rigs and related ancillary equipment. It operates a fleet of 56 drilling rigs, including 50 in Canada and 6 in the United States. The Production Services segment offers well servicing rigs and related equipment. This segment also provides oilfield rental equipment for hydraulic fracturing services, well completions and production work, and coil tubing and drilling services. This segment operates a fleet of 66 service rigs, including 32 singles, 26 doubles, and 8 slant service rigs. The company serves crude oil and natural gas exploration and production companies, and other oilfield service companies. Western Energy Services Corp. is headquartered in Calgary, Canada.
Helmerich & Payne Company Profile
Helmerich & Payne, Inc. primarily engages in drilling oil and gas wells for exploration and production companies. The company operates through U.S. Land, Offshore, and International Land segments. The U.S. Land segment drills primarily in Colorado, Louisiana, Ohio, Oklahoma, New Mexico, North Dakota, Pennsylvania, Texas, Utah, West Virginia, and Wyoming. The Offshore segment has drilling operations in the Gulf of Mexico. The International Land segment conducts drilling operations in Colombia, Argentina, Bahrain, and the United Arab Emirates. As of September 30, 2017, the company operated a fleet of 350 land rigs in the United States; 38 international land rigs; and 8 offshore platform rigs. The company also provides drilling rigs, equipment, personnel, and related ancillary services on a contract basis to explore for and develop oil and gas from onshore areas and from fixed platforms, tension-leg platforms, and spars in offshore areas. In addition, it owns, develops, and operates commercial real estate properties; and researches and develops rotary steerable technology. Its real estate investments include a shopping center comprising approximately 441,000 leasable square feet; multi-tenant industrial warehouse properties covering approximately one million leasable square feet; and approximately 210 acres of undeveloped real estate located in Tulsa, Oklahoma. Further, the company offers Bit Guidance System, an algorithm-driven system, which considers the total economic consequences of directional drilling decisions and consistently lowers drilling costs through more efficient drilling and increase hydrocarbon production. Helmerich & Payne, Inc. was founded in 1920 and is headquartered in Tulsa, Oklahoma.
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