Subsea 7 (OTCMKTS:SUBCY) & Petrofac (OTCMKTS:POFCY) Critical Analysis

Petrofac (OTCMKTS:POFCY) and Subsea 7 (OTCMKTS:SUBCY) are both energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, dividends, institutional ownership, analyst recommendations and earnings.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Petrofac	$2.50 billion	0.00	-$505.00 million	N/A	N/A
Subsea 7	$6.84 billion	1.14	$201.40 million	$0.96	27.57

Subsea 7 has higher revenue and earnings than Petrofac.

Volatility and Risk

Petrofac has a beta of 2.84, indicating that its stock price is 184% more volatile than the S&P 500. Comparatively, Subsea 7 has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Petrofac and Subsea 7, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Petrofac	0	0	0	0	0.00
Subsea 7	0	3	0	1	2.50

Given Petrofac’s higher possible upside, equities analysts clearly believe Petrofac is more favorable than Subsea 7.

Insider & Institutional Ownership

0.0% of Subsea 7 shares are owned by institutional investors. 1.0% of Subsea 7 shares are owned by company 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Petrofac	N/A	N/A	N/A
Subsea 7	4.08%	6.66%	3.59%

Summary

Subsea 7 beats Petrofac on 9 of the 11 factors compared between the two stocks.

About Petrofac

Petrofac Limited designs, builds, manages, and maintains infrastructure for the energy industries in the United Kingdom, Algeria, Thailand, Oman, Kuwait, Iraq, the United Arab Emirates, the Netherlands, and internationally. It operates through three segments: Engineering & Construction (E&C); Asset Solutions; and Integrated Energy Services (IES). The E&C segment provides onshore and offshore engineering, procurement, construction, installation, and commissioning services. The Asset Solutions segment offers concept, feasibility, and front-end engineering design services, as well as manages and maintains onshore and offshore operations. The IES segment focuses on delivering value from the existing asset portfolio. The company was founded in 1981 and is based in St Helier, Jersey.

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.