Critical Review: Helmerich & Payne (HP) vs. Western Energy Services (WEEEF)

Helmerich & Payne (NYSE:HP) and Western Energy Services (OTCMKTS:WEEEF) are both oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, dividends, valuation and profitability.

Profitability

This table compares Helmerich & Payne and Western Energy Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Helmerich & Payne 19.41% 0.41% 0.29%
Western Energy Services -15.16% -9.61% -5.12%



Risk & Volatility

Helmerich & Payne has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500. Comparatively, Western Energy Services has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500.

Valuation & Earnings

This table compares Helmerich & Payne and Western 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 $2.49 billion 2.34 $482.67 million $0.14 381.64
Western Energy Services $183.65 million 0.17 -$28.94 million N/A N/A

Helmerich & Payne has higher revenue and earnings than Western Energy Services.

Dividends

Helmerich & Payne pays an annual dividend of $2.84 per share and has a dividend yield of 5.3%. Western Energy Services does not pay a dividend. Helmerich & Payne pays out 2,028.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Helmerich & Payne has increased its dividend for 46 consecutive years.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Helmerich & Payne and Western Energy Services, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Helmerich & Payne 2 9 11 0 2.41
Western Energy Services 0 0 0 0 N/A

Helmerich & Payne currently has a consensus target price of $71.88, suggesting a potential upside of 34.54%. Given Helmerich & Payne’s higher probable upside, equities research analysts plainly believe Helmerich & Payne is more favorable than Western Energy Services.

Insider and Institutional Ownership

90.7% of Helmerich & Payne shares are held by institutional investors. 4.1% of Helmerich & Payne shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Helmerich & Payne beats Western Energy Services on 13 of the 14 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.

Western Energy Services Company Profile

Western Energy Services Corp. operates as an oilfield service company in Canada and the United States. The company operates through Contract Drilling and Production Services segments. The Contract Drilling segment operates drilling rigs and related ancillary equipment. It operates a fleet of 56 drilling rigs, including 50 in Canada and 6 in the United States. The Production Services segment offers well servicing rigs and related equipment. This segment also provides oilfield rental equipment for hydraulic fracturing services, well completions and production work, and coil tubing and drilling services. This segment operates a fleet of 66 service rigs, including 32 singles, 26 doubles, and 8 slant service rigs. The company serves crude oil and natural gas exploration and production companies, and other oilfield service companies. Western Energy Services Corp. is headquartered in Calgary, Canada.

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