Parker Drilling (NYSE: BTE) and Baytex Energy (NYSE:BTE) are both small-cap oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, institutional ownership, analyst recommendations and risk.
This table compares Parker Drilling and Baytex Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and recommmendations for Parker Drilling and Baytex Energy, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Baytex Energy has a consensus price target of $5.00, suggesting a potential upside of 61.81%. Given Baytex Energy’s higher possible upside, analysts plainly believe Baytex Energy is more favorable than Parker Drilling.
Risk & Volatility
Parker Drilling has a beta of 1.54, meaning that its stock price is 54% more volatile than the S&P 500. Comparatively, Baytex Energy has a beta of 3.02, meaning that its stock price is 202% more volatile than the S&P 500.
Valuation & Earnings
This table compares Parker Drilling and Baytex Energy’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Parker Drilling||$442.52 million||0.08||-$118.70 million||($12.59)||-0.31|
|Baytex Energy||$1.42 billion||0.52||$67.24 million||($0.02)||-154.50|
Baytex Energy has higher revenue and earnings than Parker Drilling. Baytex Energy is trading at a lower price-to-earnings ratio than Parker Drilling, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
29.7% of Baytex Energy shares are owned by institutional investors. 3.3% of Parker Drilling shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Baytex Energy beats Parker Drilling on 11 of the 13 factors compared between the two stocks.
Parker Drilling Company Profile
Parker Drilling Company provides contract drilling and drilling-related services, and rental tools and services to the energy industry. It operates through two business lines, Drilling Services and Rental Tools Services. The Drilling Services business line drills oil, natural gas, and geothermal wells with company-owned rigs and customer-owned rigs; and operates barge rigs for drilling oil and natural gas in the shallow waters in and along the inland waterways and coasts of Louisiana, Alabama, and Texas. This business line also provides project related services, such as engineering, procurement, project management, and commissioning of customer-owned drilling facility projects; drill wells and manages the logistical and technological challenges of operating in remote, harsh, and ecologically sensitive areas. The Rental Tools Services business line offers rental equipment, such as standard and heavy-weight drill pipes, tubing, drill collars, and others; pressure control equipment, including blow-out preventers; well construction services, such as tubular running services and downhole tools; well intervention services comprising whipstock, fishing products, and related services; and inspection and machine shop support services for exploration and production companies, drilling contractors, and service companies on land and offshore. The company serves independent and national oil and natural gas exploration and production companies, and integrated service providers in the United States, Russia and other Commonwealth of Independent States countries, Europe, the Middle East, Africa, Asia, Latin America, and other countries. Parker Drilling Company was founded in 1934 and is headquartered in Houston, Texas.
Baytex Energy Company Profile
Baytex Energy Corp., an oil and gas company, engages in the acquisition, development, and production of oil and natural gas in the Western Canadian Sedimentary Basin and in the Eagle Ford in the United States. It offers heavy oil, heavy gravity crude oil, bitumen, light oil, and natural gas liquids. Its primary oil resource plays include the Eagle Ford in Texas, and the Peace River Oil Sands and Lloydminster heavy oil projects in North America. The company provides 612 million barrels of oil equivalent; bitumen in low estimate to 1,181 million barrels of oil equivalent; and bitumen in the high estimate to 798 million barrels of oil equivalent. Baytex Energy Corp. was founded in 1993 and is headquartered in Calgary, Canada.
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