Contrasting Trican Well Service (OTCMKTS:TOLWF) and Pason Systems (OTCMKTS:PSYTF)

Pason Systems (OTCMKTS:PSYTF) and Trican Well Service (OTCMKTS:TOLWF) are both energy companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, analyst recommendations, risk and dividends.

Dividends

Pason Systems pays an annual dividend of $0.47 per share and has a dividend yield of 4.1%. Trican Well Service pays an annual dividend of $0.30 per share and has a dividend yield of 9.8%. Pason Systems pays out 44.0% of its earnings in the form of a dividend. Trican Well Service pays out -145.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Trican Well Service is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of current recommendations and price targets for Pason Systems and Trican Well Service, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pason Systems	0	0	2	0	3.00
Trican Well Service	0	1	0	0	2.00

Pason Systems currently has a consensus price target of $12.38, indicating a potential upside of 7.14%. Trican Well Service has a consensus price target of $2.50, indicating a potential downside of 18.24%. Given Pason Systems’ stronger consensus rating and higher probable upside, equities analysts clearly believe Pason Systems is more favorable than Trican Well Service.

Valuation and Earnings

This table compares Pason Systems and Trican Well Service’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pason Systems	N/A	N/A	N/A	$1.07	10.82
Trican Well Service	N/A	N/A	N/A	($0.21)	-14.82

Trican Well Service is trading at a lower price-to-earnings ratio than Pason Systems, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Pason Systems and Trican Well Service’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pason Systems	N/A	N/A	N/A
Trican Well Service	N/A	N/A	N/A

Insider and Institutional Ownership

46.7% of Pason Systems shares are held by institutional investors. Comparatively, 76.8% of Trican Well Service shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Pason Systems beats Trican Well Service on 5 of the 8 factors compared between the two stocks.

About Pason Systems

Pason Systems Inc., together with its subsidiaries, provides instrumentation and data management systems for drilling rigs in Canada, the United States, and internationally. The company provides Electronic Drilling Recorder, which provides real-time drilling data to rig site personnel; DataHub with Pason Live, which is used as the central repository for data and reports captured at the rigs for real-time; and DataLink that provides automated in-house databases, third-party analytics platforms, remote geosteering, and other remote services. It offers AutoDriller to maximize the rate of penetration and bit life; internet solutions, such as auto-aiming satellite dishes, data modems, and bandwidth management software; DAS, a rotary drilling automation and optimization software; Electronic Choke Actuator that controls the choke valve; Gas Analyzer that provides real-time compositional gas analysis; Hazardous Gas Alarm System that detects the presence of hazardous gases; Pit Volume Totalizer, which monitors mud volumes and flow rates during drilling, tripping, and casing operations; and Toolface Control, a directional automation software. In addition, the company provides phone, chat, field, and drilling optimization support, as well as proactive monitoring and office support for data integration. It serves drilling contractors and other oilfield service companies. Pason Systems Inc. was founded in 1978 and is headquartered in Calgary, Canada.

About Trican Well Service

Trican Well Service Ltd., an equipment services company, provides various specialized products, equipment, services, and technology for use in the drilling, completion, stimulation, and reworking of oil and gas wells primarily in Canada. The company offers cementing solutions, including pre-flushes and spacers, cement plugs, lost circulation, cement design, and laboratory solutions, as well as surface, intermediate, production, liner, horizontal, and remedial/squeeze cementing services. It also provides hydraulic fracturing solutions, such as friction reducers, crosslinked gels, energized foam systems, visco-elastic systems, and high-rate nitrogen for coal bed methane fracturing and gelled hydrocarbons, as well as dissolvable ball sealers and diverting agents; and coiled tubing solutions comprising milling services, including fracturing plugs and ports, stage tool/debris subs, cement milling, and confirmation runs; coiled tubing fracturing; e-coil; in-house engineering; and acidizing and production enhancement services. In addition, the company offers fracture acidizing and production enhancement services that include restore well performance blockages from inorganic scales, emulsions, drilling mud, formation fines, clays, and organic deposits; nitrogen services; and engineering support, reservoir expertise, and laboratory services, as well as engages in the chemical sales. Trican Well Service Ltd. was incorporated in 1979 and is headquartered in Calgary, Canada.