Comparing ProPetro (NYSE:PUMP) and Valaris (NYSE:VAL)

Valaris (NYSE:VAL) and ProPetro (NYSE:PUMP) are both energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, earnings, profitability, valuation and institutional ownership.

Institutional and Insider Ownership

96.7% of Valaris shares are owned by institutional investors. Comparatively, 84.7% of ProPetro shares are owned by institutional investors. 0.8% of Valaris shares are owned by insiders. Comparatively, 1.5% of ProPetro shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Valaris has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500. Comparatively, ProPetro has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Valaris and ProPetro, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Valaris	1	6	0	0	1.86
ProPetro	1	3	8	0	2.58

Valaris currently has a consensus price target of $68.50, suggesting a potential downside of 34.98%. ProPetro has a consensus price target of $15.25, suggesting a potential upside of 97.41%. Given ProPetro’s stronger consensus rating and higher possible upside, analysts clearly believe ProPetro is more favorable than Valaris.

Valuation and Earnings

This table compares Valaris and ProPetro”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Valaris	$2.14 billion	3.42	$982.80 million	$13.39	7.87
ProPetro	$1.16 billion	0.82	$820,000.00	N/A	N/A

Valaris has higher revenue and earnings than ProPetro.

Profitability

This table compares Valaris and ProPetro’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Valaris	43.95%	9.25%	5.35%
ProPetro	0.16%	0.21%	0.12%

Summary

Valaris beats ProPetro on 8 of the 12 factors compared between the two stocks.

About Valaris

Valaris Limited, together with its subsidiaries, provides offshore contract drilling services Gulf of Mexico, South America, North Sea, the Middle East, Africa, and the Asia Pacific. The company operates through four segments: Floaters, Jackups, ARO, and Other. It owns an offshore drilling rig fleet, which include drillships, dynamically positioned semisubmersible rigs, moored semisubmersible rig, and jackup rigs. It serves international, government-owned, and independent oil and gas. Valaris Limited was founded in 1975 and is based in Hamilton, Bermuda.

About ProPetro

ProPetro Holding Corp. operates as an integrated oilfield services company. The company provides hydraulic fracturing, wireline, cementing, and other complementary oilfield completion services to upstream oil and gas companies in the Permian Basin. ProPetro Holding Corp. was founded in 2007 and is headquartered in Midland, Texas.