Comparing Propetro (NYSE:PUMP) & Key Energy Services (NYSE:KEGX)

Propetro (NYSE:PUMP) and Key Energy Services (OTCMKTS:KEGX) are both small-cap oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, valuation, risk, earnings, analyst recommendations, dividends and institutional ownership.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Propetro and Key Energy Services, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Propetro 1 9 7 0 2.35
Key Energy Services 0 1 0 0 2.00

Propetro currently has a consensus target price of $10.15, indicating a potential upside of 89.01%. Given Propetro’s stronger consensus rating and higher possible upside, research analysts clearly believe Propetro is more favorable than Key Energy Services.

Insider & Institutional Ownership

75.4% of Propetro shares are held by institutional investors. 5.0% of Propetro shares are held by insiders. Comparatively, 2.7% of Key Energy Services shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Propetro and Key Energy Services’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Propetro $2.05 billion 0.26 $163.01 million $1.60 3.36
Key Energy Services $413.85 million 0.33 -$97.42 million ($218.03) -0.05

Propetro has higher revenue and earnings than Key Energy Services. Key Energy Services is trading at a lower price-to-earnings ratio than Propetro, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Propetro has a beta of 3.33, suggesting that its share price is 233% more volatile than the S&P 500. Comparatively, Key Energy Services has a beta of 2.93, suggesting that its share price is 193% more volatile than the S&P 500.

Profitability

This table compares Propetro and Key Energy Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Propetro 4.49% 12.36% 8.12%
Key Energy Services 9.21% -709.51% -18.16%

Summary

Propetro beats Key Energy Services on 12 of the 14 factors compared between the two stocks.

Propetro Company Profile

ProPetro Holding Corp., an oilfield services company, provides pressure pumping and other related services. The company offers hydraulic fracturing services; and a suite of well completion and production services, including cementing, acidizing, coiled tubing, flowback, surface air drilling, and drilling services. It serves the upstream oil and gas companies engaged in the exploration and production of North American unconventional oil and natural gas resources in the Permian Basin. As of December 31, 2018, the company's fleet comprised 20 hydraulic fracturing units with 905,000 hydraulic horsepower. ProPetro Holding Corp. was founded in 2007 and is headquartered in Midland, Texas.

Key Energy Services Company Profile

Key Energy Services, Inc. operates as an onshore rig-based well servicing contractor in the United States. It operates through Rig Services, Fishing and Rental Services, Coiled Tubing Services, and Fluid Management Services segments. The 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 useful lives, as well as provision of specialty drilling services to oil and natural gas producers. The 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. The 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. The 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 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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