Contrasting Helmerich & Payne (HP) and Vantage Drilling (VTGDF)
Helmerich & Payne (NYSE: HP) and Vantage Drilling (OTCMKTS:VTGDF) are both oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.
Insider & Institutional Ownership
95.7% of Helmerich & Payne shares are held by institutional investors. 4.1% of Helmerich & Payne shares are held by company insiders. Comparatively, 7.5% of Vantage Drilling shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This table compares Helmerich & Payne and Vantage Drilling’s 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%|
Earnings & Valuation
This table compares Helmerich & Payne and Vantage Drilling’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Helmerich & Payne||$1.80 billion||4.00||-$128.21 million||($1.27)||-52.27|
|Vantage Drilling||$212.85 million||0.01||-$149.78 million||N/A||N/A|
Helmerich & Payne has higher revenue and earnings than Vantage Drilling.
This is a summary of current ratings and price targets for Helmerich & Payne and Vantage Drilling, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Helmerich & Payne||4||15||6||0||2.08|
Helmerich & Payne presently has a consensus target price of $57.91, suggesting a potential downside of 12.76%. Given Helmerich & Payne’s higher probable upside, analysts clearly believe Helmerich & Payne is more favorable than Vantage Drilling.
Helmerich & Payne pays an annual dividend of $2.80 per share and has a dividend yield of 4.2%. Vantage Drilling 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.
Risk and Volatility
Helmerich & Payne has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500. Comparatively, Vantage Drilling has a beta of 2.14, meaning that its stock price is 114% more volatile than the S&P 500.
Helmerich & Payne beats Vantage Drilling on 12 of the 14 factors compared between the two stocks.
About Helmerich & Payne
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.
About Vantage Drilling
Vantage Drilling Company, through its subsidiaries, provides offshore contract drilling services in the United States and internationally. It offers drilling units, related equipment, and work crews under contract to drill oil and natural gas wells. The company also provides construction supervision and operations management services for drilling units owned by others. As of March 6, 2015, it owned a fleet of seven drilling units, including three ultra-deepwater drillships and four ultra-premium jackup rigs. The company primarily serves multinational oil and natural gas companies, government owned oil and natural gas companies, and independent oil and natural gas producers. Vantage Drilling Company was founded in 2007 and is based in Houston, Texas.
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