Pacific Drilling (PACDQ) and Its Peers Head to Head Review

Pacific Drilling (OTCMKTS: PACDQ) is one of 17 public companies in the “Oil & Gas Drilling” industry, but how does it contrast to its competitors? We will compare Pacific Drilling to similar businesses based on the strength of its earnings, risk, analyst recommendations, institutional ownership, valuation, profitability and dividends.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Pacific Drilling and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pacific Drilling 0 0 0 0 N/A
Pacific Drilling Competitors 498 1569 1266 58 2.26

As a group, “Oil & Gas Drilling” companies have a potential upside of 5.15%. Given Pacific Drilling’s competitors higher probable upside, analysts clearly believe Pacific Drilling has less favorable growth aspects than its competitors.

Profitability

This table compares Pacific Drilling and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pacific Drilling -101.35% -17.63% -7.68%
Pacific Drilling Competitors -17.17% -4.72% -1.12%

Risk and Volatility

Pacific Drilling has a beta of 3.21, suggesting that its stock price is 221% more volatile than the S&P 500. Comparatively, Pacific Drilling’s competitors have a beta of 2.19, suggesting that their average stock price is 119% more volatile than the S&P 500.

Institutional and Insider Ownership

0.3% of Pacific Drilling shares are owned by institutional investors. Comparatively, 71.6% of shares of all “Oil & Gas Drilling” companies are owned by institutional investors. 2.2% of shares of all “Oil & Gas Drilling” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Pacific Drilling and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Pacific Drilling $769.47 million -$37.15 million -0.02
Pacific Drilling Competitors $1.59 billion -$49.50 million 81.73

Pacific Drilling’s competitors have higher revenue, but lower earnings than Pacific Drilling. Pacific Drilling is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Pacific Drilling competitors beat Pacific Drilling on 8 of the 10 factors compared.

Pacific Drilling Company Profile

Pacific Drilling S.A. is an international offshore drilling contractor. The Company provides offshore drilling services to the oil and natural gas industry through the use of high-specification rigs. The Company’s primary business is to contract its high-specification rigs, related equipment and work crews, primarily on a day rate basis, to drill wells for its clients. The Company is engaged in drillships segment. The Company focuses on the high-specification segment of the floating rig market. The Company considers high-specification requirements to include rigs in water depths of approximately 7,500 feet or projects requiring advanced operating capabilities, such as hook-loads (>800 tons), accommodations (over 200 beds), mud storage and pumping capacity, and deck-load and space capabilities. The Company’s contract drillships operate in the deepwater regions of the United States, Gulf of Mexico and Nigeria.

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