Tetra Technologies (NYSE:TTI) versus Valaris (NYSE:VAL) Financial Survey

Valaris (NYSE:VAL) and Tetra Technologies (NYSE:TTI) are both energy companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, institutional ownership, risk and valuation.

Analyst Ratings

This is a summary of recent recommendations for Valaris and Tetra Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Valaris	1	6	0	0	1.86
Tetra Technologies	0	2	3	0	2.60

Valaris currently has a consensus target price of $66.60, suggesting a potential downside of 19.78%. Tetra Technologies has a consensus target price of $11.17, suggesting a potential upside of 87.99%. Given Tetra Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe Tetra Technologies is more favorable than Valaris.

Valuation & Earnings

This table compares Valaris and Tetra Technologies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Valaris	$2.37 billion	2.43	$982.80 million	$13.39	6.20
Tetra Technologies	$630.93 million	1.39	$3.01 million	$0.04	148.50

Valaris has higher revenue and earnings than Tetra Technologies. Valaris is trading at a lower price-to-earnings ratio than Tetra Technologies, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

96.7% of Valaris shares are held by institutional investors. Comparatively, 70.2% of Tetra Technologies shares are held by institutional investors. 0.8% of Valaris shares are held by insiders. Comparatively, 6.3% of Tetra Technologies shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Valaris has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500. Comparatively, Tetra Technologies has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500.

Profitability

This table compares Valaris and Tetra Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Valaris	43.95%	9.25%	5.35%
Tetra Technologies	0.97%	9.11%	4.14%

Summary

Valaris beats Tetra Technologies on 8 of the 14 factors compared between the two stocks.

About Valaris

Valaris Limited, together with its subsidiaries, provides offshore contract drilling services Gulf of Mexico, South America, North Sea, the Middle East, Africa, and the Asia Pacific. The company operates through four segments: Floaters, Jackups, ARO, and Other. It owns an offshore drilling rig fleet, which include drillships, dynamically positioned semisubmersible rigs, moored semisubmersible rig, and jackup rigs. It serves international, government-owned, and independent oil and gas. Valaris Limited was founded in 1975 and is based in Hamilton, Bermuda.

About Tetra Technologies

TETRA Technologies, Inc., together with its subsidiaries, operates as an energy services and solutions company. It operates through two segments, Completion Fluids & Products Division and Water & Flowback Services. The Completion Fluids & Products segment manufactures and markets clear brine fluids, additives, and associated products and services to the oil and gas industry for use in well drilling, completion, and workover operations in the United States, as well as in Latin America, Europe, Asia, the Middle East, and Africa. This segment also markets liquid and dry calcium chloride products; and TETRA PureFlow ultra-pure zinc bromide to battery technology companies. The Water & Flowback Services segment provides water management services for onshore oil and gas operators. This segment also offers frac flowback, production well testing, and other associated services in oil and gas producing regions in the United States, as well as in various basins in Latin America, Africa, Europe, and the Middle East. TETRA Technologies, Inc. was incorporated in 1981 and is headquartered in The Woodlands, Texas.