Nabors Industries (NYSE:NBR – Get Free Report) and USA Compression Partners (NYSE:USAC – Get Free Report) are both energy companies, but which is the better business? We will compare the two companies based on the strength of their profitability, risk, institutional ownership, earnings, valuation, dividends and analyst recommendations.
Valuation and Earnings
This table compares Nabors Industries and USA Compression Partners”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nabors Industries | $3.21 billion | 0.45 | $286.62 million | ($4.65) | -19.51 |
| USA Compression Partners | $1.18 billion | 3.14 | $111.32 million | $1.06 | 24.05 |
Volatility and Risk
Nabors Industries has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500. Comparatively, USA Compression Partners has a beta of 0.28, suggesting that its stock price is 72% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Nabors Industries and USA Compression Partners, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nabors Industries | 0 | 6 | 2 | 0 | 2.25 |
| USA Compression Partners | 0 | 5 | 0 | 1 | 2.33 |
Nabors Industries currently has a consensus price target of $103.43, indicating a potential upside of 14.00%. USA Compression Partners has a consensus price target of $29.50, indicating a potential upside of 15.73%. Given USA Compression Partners’ stronger consensus rating and higher probable upside, analysts plainly believe USA Compression Partners is more favorable than Nabors Industries.
Profitability
This table compares Nabors Industries and USA Compression Partners’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nabors Industries | -1.17% | -3.98% | -0.85% |
| USA Compression Partners | 12.43% | 179.77% | 4.83% |
Institutional and Insider Ownership
81.9% of Nabors Industries shares are owned by institutional investors. Comparatively, 47.8% of USA Compression Partners shares are owned by institutional investors. 5.3% of Nabors Industries shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
USA Compression Partners beats Nabors Industries on 9 of the 15 factors compared between the two stocks.
About Nabors Industries
Nabors Industries Ltd. provides drilling and drilling-related services for land-based and offshore oil and natural gas wells in the United States and internationally. The company operates through four segments: U.S. Drilling, International Drilling, Drilling Solutions, and Rig Technologies. It provides tubular running services, including casing and tubing running, and torque monitoring; managed pressure drilling services; and drilling-bit steering systems and rig instrumentation software. The company also offers drilling systems comprising ROCKit, a directional steering control system; SmartNAV, a collaborative guidance and advisory platform; SmartSLIDE, a directional steering control system; and RigCLOUD, a digital infrastructure to integrate applications to deliver real-time insight into operations across the rig fleet. In addition, it operates a fleet of land-based drilling rigs and marketed platforms rigs; manufactures and sells top drives, catwalks, wrenches, drawworks, and other drilling related equipment, such as robotic systems and downhole tools; and provides aftermarket sales and services for the installed base of its equipment. Nabors Industries Ltd. was founded in 1952 and is based in Hamilton, Bermuda.
About USA Compression Partners
USA Compression Partners, LP provides compression services under term contracts with customers in the natural gas and crude oil industries in the United States. The company engineers, designs, operates, services, and repairs its compression units; and maintains related support inventory and equipment. It also provides compression services in various shale plays, including the Utica, Marcellus, Permian Basin, Delaware Basin, Eagle Ford, Mississippi Lime, Granite Wash, Woodford, Barnett, Haynesville, Niobrara, and Fayetteville shales. As of December 31, 2017, the company had approximately 1,799,781 horsepower in its fleet. It serves oil companies; and independent producers, processors, gatherers, and transporters of natural gas and crude oil. USA Compression GP, LLC operates as the general partner of USA Compression Partners, LP. The company was formerly known as Compression Holdings, LP, and changed its name to USA Compression Partners, LP in June 2011. USA Compression Partners, LP was founded in 1998 and is headquartered in Austin, Texas.
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