Helmerich & Payne (NYSE: HP) and Key Energy Services (NYSE:KEG) are both oils/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.
Helmerich & Payne pays an annual dividend of $2.80 per share and has a dividend yield of 3.9%. Key Energy Services does not pay a dividend. Helmerich & Payne pays out -220.5% of its earnings in the form of a dividend. Helmerich & Payne has increased its dividend for 45 consecutive years.
Volatility & Risk
Helmerich & Payne has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500. Comparatively, Key Energy Services has a beta of 2.32, meaning that its share price is 132% more volatile than the S&P 500.
This is a breakdown of current recommendations and price targets for Helmerich & Payne and Key Energy Services, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Helmerich & Payne||5||15||6||0||2.04|
|Key Energy Services||0||4||2||0||2.33|
Helmerich & Payne currently has a consensus price target of $57.35, suggesting a potential downside of 21.02%. Key Energy Services has a consensus price target of $16.20, suggesting a potential downside of 8.06%. Given Key Energy Services’ stronger consensus rating and higher possible upside, analysts clearly believe Key Energy Services is more favorable than Helmerich & Payne.
Institutional and Insider Ownership
95.7% of Helmerich & Payne shares are owned by institutional investors. Comparatively, 55.4% of Key Energy Services shares are owned by institutional investors. 4.1% of Helmerich & Payne shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This table compares Helmerich & Payne and Key Energy Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Helmerich & Payne||20.39%||-0.81%||-0.55%|
|Key Energy Services||N/A||N/A||N/A|
Valuation and Earnings
This table compares Helmerich & Payne and Key Energy Services’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Helmerich & Payne||$1.80 billion||4.38||-$128.21 million||($1.27)||-57.17|
|Key Energy Services||$436.17 million||0.82||-$127.25 million||($6.29)||-2.80|
Key Energy Services has lower revenue, but higher earnings than Helmerich & Payne. Helmerich & Payne is trading at a lower price-to-earnings ratio than Key Energy Services, indicating that it is currently the more affordable of the two stocks.
Helmerich & Payne beats Key Energy Services on 10 of the 17 factors compared between the two stocks.
Helmerich & Payne Company Profile
Helmerich & Payne, Inc. primarily engages in drilling oil and gas wells for exploration and production companies. The company operates through U.S. Land, Offshore, and International Land segments. The U.S. Land segment drills primarily in Colorado, Louisiana, Ohio, Oklahoma, New Mexico, North Dakota, Pennsylvania, Texas, Utah, West Virginia, and Wyoming. The Offshore segment has drilling operations in the Gulf of Mexico. The International Land segment conducts drilling operations in Colombia, Argentina, Bahrain, and the United Arab Emirates. As of September 30, 2017, the company operated a fleet of 350 land rigs in the United States; 38 international land rigs; and 8 offshore platform rigs. The company also provides drilling rigs, equipment, personnel, and related ancillary services on a contract basis to explore for and develop oil and gas from onshore areas and from fixed platforms, tension-leg platforms, and spars in offshore areas. In addition, it owns, develops, and operates commercial real estate properties; and researches and develops rotary steerable technology. Its real estate investments include a shopping center comprising approximately 441,000 leasable square feet; multi-tenant industrial warehouse properties covering approximately one million leasable square feet; and approximately 210 acres of undeveloped real estate located in Tulsa, Oklahoma. Further, the company offers Bit Guidance System, an algorithm-driven system, which considers the total economic consequences of directional drilling decisions and consistently lowers drilling costs through more efficient drilling and increase hydrocarbon production. Helmerich & Payne, Inc. was founded in 1920 and is headquartered in Tulsa, Oklahoma.
Key Energy Services Company Profile
Key Energy Services, Inc. operates as an onshore rig-based well servicing contractor in the United States. The company's U.S. Rig Services segment is involved in the completion of newly drilled wells; workover and recompletion of existing oil and natural gas wells; well maintenance activities; and plugging and abandonment of wells at the end of their lives, as well as provision of specialty drilling services to oil and natural gas producers. Its Fluid Management Services segment offers transportation and well-site storage services for fluids utilized in drilling, completions, workover, and maintenance activities; and disposal services for fluids produced subsequent to well completion. It also operates a fleet of hot oilers used to clear soluble restrictions in a wellbore. The company's Coiled Tubing Services segment offers services for wellbore clean-outs, nitrogen jet lifts, through-tubing fishing, and formation stimulations; mills temporary isolation plugs that separate frac zones; and other pre- and post-hydraulic fracturing well preparation services. Its Fishing and Rental Services segment provides fishing services that involve recovering lost or stuck equipment in the wellbore utilizing fishing tools; and rents drill pipes, tubulars, handling tools, pressure-control equipment, pumps, power swivels, reversing units, and foam air units, as well as frac stack equipment used to support hydraulic fracturing operations and the associated flowback of frac fluids, proppants, oil, and natural gas. The company was formerly known as Key Energy Group, Inc. and changed its name to Key Energy Services, Inc. in December 1998. Key Energy Services, Inc. was founded in 1977 and is based in Houston, Texas.
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