Head-To-Head Review: ProPetro (NYSE:PUMP) versus Subsea 7 (OTC:SUBCY)

ProPetro (NYSE:PUMP) and Subsea 7 (OTC:SUBCY) are both energy companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, institutional ownership and profitability.

Analyst Ratings

This is a summary of recent ratings for ProPetro and Subsea 7, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ProPetro	0	3	2	0	2.40
Subsea 7	0	1	0	0	2.00

ProPetro presently has a consensus target price of $10.75, indicating a potential upside of 42.06%. Given ProPetro’s stronger consensus rating and higher probable upside, analysts clearly believe ProPetro is more favorable than Subsea 7.

Volatility and Risk

ProPetro has a beta of 2.03, meaning that its stock price is 103% more volatile than the S&P 500. Comparatively, Subsea 7 has a beta of 1.7, meaning that its stock price is 70% more volatile than the S&P 500.

Profitability

This table compares ProPetro and Subsea 7’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ProPetro	-9.55%	3.20%	2.09%
Subsea 7	2.46%	3.72%	1.98%

Valuation & Earnings

This table compares ProPetro and Subsea 7″s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ProPetro	$1.44 billion	0.54	$85.63 million	($1.34)	-5.65
Subsea 7	$5.97 billion	0.79	$15.40 million	$0.67	23.44

ProPetro has higher earnings, but lower revenue than Subsea 7. ProPetro is trading at a lower price-to-earnings ratio than Subsea 7, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

84.7% of ProPetro shares are owned by institutional investors. Comparatively, 0.0% of Subsea 7 shares are owned by institutional investors. 0.9% of ProPetro shares are owned by insiders. Comparatively, 1.0% of Subsea 7 shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

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.

About Subsea 7

Subsea 7 S.A. delivers offshore projects and services for the energy industry worldwide. It provides subsea field development products and services, including project management, design and engineering, procurement, fabrication, survey, installation, and commissioning of production facilities on the seabed and the tie-back of its facilities to fixed or floating platforms or to the shore. The company also offers engineering, procurement, commissioning, and installation of subsea umbilicals, risers, and flowlines; inspection, repair, maintenance, remote intervention, and integrity management of subsea infrastructure services; conventional services comprising fabrication, installation, extension, and refurbishment of fixed and floating platforms and associated pipelines in shallow water; and hook-up services. In addition, it operates heavy lifting operations and heavy transportation services for renewables structures; and installs offshore wind turbine foundations, as well as engages in the decommissioning of redundant offshore structures. Further, the company provides remotely operated vehicles (ROVs) and tooling services to support exploration and production activities, as well as engineering and advisory services for customers in the oil and gas, renewables, and utilities industries. The company was incorporated in 1993 and is based in Luxembourg, Luxembourg.