Critical Analysis: Drilling Tools International (DTI) and The Competition

Drilling Tools International (NASDAQ:DTI) is one of 177 public companies in the “Energy Equipment & Services” industry, but how does it compare to its competitors? We will compare Drilling Tools International to related companies based on the strength of its institutional ownership, profitability, dividends, valuation, analyst recommendations, earnings and risk.

Institutional & Insider Ownership

2.8% of Drilling Tools International shares are owned by institutional investors. Comparatively, 48.9% of shares of all “Energy Equipment & Services” companies are owned by institutional investors. 17.1% of Drilling Tools International shares are owned by insiders. Comparatively, 12.3% of shares of all “Energy Equipment & Services” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and price targets for Drilling Tools International and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Drilling Tools International	2	1	0	0	1.33
Drilling Tools International Competitors	1683	6848	8636	490	2.45

Drilling Tools International currently has a consensus target price of $2.80, indicating a potential upside of 73.91%. As a group, “Energy Equipment & Services” companies have a potential upside of 33.25%. Given Drilling Tools International’s higher possible upside, research analysts plainly believe Drilling Tools International is more favorable than its competitors.

Profitability

This table compares Drilling Tools International and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Drilling Tools International	-3.06%	-0.40%	-0.22%
Drilling Tools International Competitors	-10.56%	7.42%	1.49%

Risk and Volatility

Drilling Tools International has a beta of -0.56, meaning that its stock price is 156% less volatile than the S&P 500. Comparatively, Drilling Tools International’s competitors have a beta of 0.82, meaning that their average stock price is 18% less volatile than the S&P 500.

Earnings & Valuation

This table compares Drilling Tools International and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Drilling Tools International	$159.63 million	-$3.76 million	-12.38
Drilling Tools International Competitors	$3.27 billion	$29.73 million	13.13

Drilling Tools International’s competitors have higher revenue and earnings than Drilling Tools International. Drilling Tools International is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Drilling Tools International competitors beat Drilling Tools International on 10 of the 13 factors compared.

About Drilling Tools International

Drilling Tools International Corporation (NASDAQ: DTI) provides rental tools and related services to the oil and gas drilling industry. The company supplies downhole equipment used in drilling, completion and production operations, serving exploration and production companies, drilling contractors and oilfield service providers. Its product offering includes drill pipe, drill collars, heavy-weight drill pipe, stabilizers, subs, mud motors, drilling jars and other specialized downhole tools. Drilling Tools International also provides equipment inspection, maintenance, repair, refurbishment and machining services intended to support the safe and efficient use of drilling equipment.