Deep Down (OTCMKTS: DPDW) and Patterson-UTI Energy (NASDAQ:PTEN) are both oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.
Volatility and Risk
Deep Down has a beta of -0.39, indicating that its stock price is 139% less volatile than the S&P 500. Comparatively, Patterson-UTI Energy has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500.
8.7% of Deep Down shares are owned by institutional investors. Comparatively, 99.7% of Patterson-UTI Energy shares are owned by institutional investors. 4.6% of Patterson-UTI Energy shares are owned 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.
This table compares Deep Down and Patterson-UTI Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Patterson-UTI Energy pays an annual dividend of $0.08 per share and has a dividend yield of 0.4%. Deep Down does not pay a dividend. Patterson-UTI Energy pays out -57.1% of its earnings in the form of a dividend.
Valuation and Earnings
This table compares Deep Down and Patterson-UTI Energy’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Deep Down||$25.38 million||0.40||$160,000.00||($0.01)||-74.93|
|Patterson-UTI Energy||$2.36 billion||1.73||$5.91 million||($0.14)||-131.07|
Patterson-UTI Energy has higher revenue and earnings than Deep Down. Patterson-UTI Energy is trading at a lower price-to-earnings ratio than Deep Down, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and price targets for Deep Down and Patterson-UTI Energy, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Patterson-UTI Energy has a consensus price target of $26.31, suggesting a potential upside of 43.39%. Given Patterson-UTI Energy’s higher possible upside, analysts plainly believe Patterson-UTI Energy is more favorable than Deep Down.
Patterson-UTI Energy beats Deep Down on 11 of the 15 factors compared between the two stocks.
Deep Down Company Profile
Deep Down, Inc. is engaged in the oilfield services industry. The Company operates through Deep Down Delaware segment. The Company is a provider of specialized services to the offshore energy industry to support deep water and ultra-deep water exploration, development and production of oil and gas, and other maritime operations. It also produces custom engineered products that assist it in fulfilling service objectives for specific projects on a contractual basis. The Company designs and manufactures deep water and ultra-deep water, surface and offshore equipment solutions, which are used by independent and foreign national oil and gas companies in offshore areas across the world. The Company provides engineering and management services, including the design, installation and retrieval of subsea equipment and systems, connection and termination operations, well-commissioning services, as well as construction support and remotely operated vehicle (ROV) operations support.
Patterson-UTI Energy Company Profile
Patterson-UTI Energy, Inc., through its subsidiaries, provides onshore contract drilling services to oil and natural gas operators in the United States and Canada. It operates through two segments: Contract Drilling and Pressure Pumping. The Contract Drilling segment markets its contract drilling services primarily in Texas, southeastern New Mexico, northern Louisiana, Colorado, Wyoming, North Dakota, western Oklahoma, Pennsylvania, Ohio, West Virginia, and western Canada. As of December 31, 2017, this segment had a drilling fleet of 295 marketable land-based drilling rigs. The Pressure Pumping segment offers pressure pumping services that consist of well stimulation and cementing for the completion of new wells and remedial work on existing wells, as well as hydraulic fracturing, nitrogen, cementing, and acid pumping services in Texas, the Mid-Continent, and the Appalachian region. Patterson-UTI Energy, Inc. also manufactures and sells pipe handling components and related technology to drilling contractors in North America and other markets; and owns and invests in oil and natural gas assets as a non-operating working interest owner located principally in Texas and New Mexico. Patterson-UTI Energy, Inc. was founded in 1978 and is headquartered in Houston, Texas.
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