KLX Energy Services (NASDAQ:KLXE – Get Free Report) and Patterson-UTI Energy (NASDAQ:PTEN – Get Free Report) are both energy companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for KLX Energy Services and Patterson-UTI Energy, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| KLX Energy Services | 1 | 1 | 0 | 0 | 1.50 |
| Patterson-UTI Energy | 1 | 4 | 9 | 1 | 2.67 |
Patterson-UTI Energy has a consensus target price of $12.95, indicating a potential upside of 4.94%. Given Patterson-UTI Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Patterson-UTI Energy is more favorable than KLX Energy Services.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| KLX Energy Services | $636.60 million | 0.05 | -$77.10 million | ($3.16) | -0.50 |
| Patterson-UTI Energy | $4.83 billion | 0.98 | -$93.64 million | ($0.23) | -53.65 |
KLX Energy Services has higher earnings, but lower revenue than Patterson-UTI Energy. Patterson-UTI Energy is trading at a lower price-to-earnings ratio than KLX Energy Services, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares KLX Energy Services and Patterson-UTI Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| KLX Energy Services | -9.71% | N/A | -18.46% |
| Patterson-UTI Energy | -1.92% | -1.68% | -0.98% |
Volatility and Risk
KLX Energy Services has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500. Comparatively, Patterson-UTI Energy has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500.
Institutional & Insider Ownership
42.7% of KLX Energy Services shares are owned by institutional investors. Comparatively, 97.9% of Patterson-UTI Energy shares are owned by institutional investors. 5.4% of KLX Energy Services shares are owned by insiders. Comparatively, 2.2% of Patterson-UTI Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
Patterson-UTI Energy beats KLX Energy Services on 10 of the 15 factors compared between the two stocks.
About KLX Energy Services
KLX Energy Services Holdings, Inc. provides drilling, completions, production, and well intervention services and products to the onshore oil and gas producing regions of the United States. The company operates through three segments: Southwest, Rocky Mountains, and Northeast/Mid-Con. It provides directional drilling services; downhole navigational and rental tools businesses and support services, including well planning, site supervision, accommodation rentals, and other drilling rentals; and various technologies, including gamma ray, azimuthal gamma ray, real-time continuous inclination and azimuth, rotary steerable, pressure-while-drilling, mode shifting, stick-slip and destructive dynamics, dynamic sequencing and real-time shock, and vibration modules. The company also offers coiled tubing and nitrogen services; wireline services, including pump down perforating, logging, and pipe recover; pressure control products and services; wellhead and hydraulic fracturing rental products and services; flowback and testing services; thru-tubing technologies and services; rig assist snubbing services; cementing products and services; acidizing and pressure pumping services; and downhole completion tools, such as toe sleeves, wet shoe cementing bypass subs, composite plugs, dissolvable plugs, liner hangers, stage cementing tools, inflatables, float and casing equipment, and retrievable completion tools. In addition, it provides production services comprising maintenance-related intervention services; production blow out preventers; mechanical wireline services; slick line services; hydro-testing services; premium tubulars; and other specialized production tools. Further, the company provides intervention services consisting of technicians and equipment that are focused on providing customers engineered solutions to downhole complications. KLX Energy Services Holdings, Inc. was incorporated in 2018 and is headquartered in Houston, Texas.
About Patterson-UTI Energy
Patterson-UTI Energy, Inc., through its subsidiaries, engages in the provision of contract drilling services to oil and natural gas operators in the United States and internationally. It operates through three segments: Drilling Services, Completion Services, and Drilling Products. The Contract Drilling Services segment provides contract and directional drilling services in onshore oil and natural gas basins, as well as engages in the service and re-certification of equipment for drilling contractors, and provision of electrical controls and automation to the energy, marine and mining industries. The Completion Services segment offers services for hydraulic fracturing, wireline and pumping, completion support, and cementing; and involved in the power solutions natural gas fueling, and logistics and storage businesses. The Drilling Products segment manufactures and distributes drill bits for energy and mining markets. It also provides software and services, such as MWD Survey FDIR, a data analytics technology to analyze MWD survey data in real-time and identify the position of a well; HiFi Nav, which enhances FDIR by targeting improved vertical placement of the directional well within the reservoir; HiFi Guidance, utilizes trajectory optimization to determine optimal steering recommendations and placement within the reservoir; and rents oilfield tools. The company was founded in 1978 and is headquartered in Houston, Texas.
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