Nabors Industries Ltd. (NBR) vs Patterson-UTI Energy, Inc. (PTEN)

Nabors Industries Ltd. and Patterson-UTI Energy, Inc. are both Oil & Gas Drilling companies. Patterson-UTI Energy, Inc. is the larger, with a market value of $4.2B against $1.3B — 3.3× the size. Patterson-UTI Energy, Inc. has negative trailing earnings, so its P/E is not meaningful; Nabors Industries Ltd. trades at 5.5×. Nabors Industries Ltd. grew revenue faster over the last twelve months: 5.56% against −6.92%. Nabors Industries Ltd. has the higher net margin (6.49% vs −1.92%) and the higher return on invested capital (11.8% vs −0.75%). Across the 20 metrics below, Nabors Industries Ltd. leads on 14 and Patterson-UTI Energy, Inc. on 6.

Valuation

Metric NBR PTEN Oil & Gas Drilling median
P/E 5.51 n/m —
P/S 0.36 0.89 1.37
P/B 1.23 1.34 1.35
Price to free cash flow 29.43 19.94 15.47
EV/EBITDA 2.39 6.23 8.26
EV/Sales 0.98 1.11 2.31
Earnings yield 18.15% (2.10%) (2.10%)
Free cash flow yield 3.40% 5.01% 3.40%

Profitability

Metric NBR PTEN Oil & Gas Drilling median
Gross margin 38.80% 23.76% 39.29%
Operating margin 20.78% (1.06%) 7.77%
Net margin 6.49% (1.92%) 0.00%
Free cash flow margin 1.23% 4.46% 4.46%
Return on equity 26.47% (2.78%) (2.78%)
Return on assets 4.44% (1.64%) (1.64%)
Return on invested capital 11.75% (0.75%) 2.29%

Growth

Metric NBR PTEN Oil & Gas Drilling median
Revenue growth (TTM) 5.56% (6.92%) 4.14%
EPS growth (last fiscal year) 177.74% 90.16% —
Revenue growth, 5-year CAGR 8.51% 33.83% 13.40%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric NBR PTEN Oil & Gas Drilling median
Debt to equity 2.24 0.40 0.61
Current ratio 1.89 1.75 1.89
Net debt to EBITDA 1.10 0.90 0.90

Dividend

Metric NBR PTEN Oil & Gas Drilling median
Dividend yield — 3.05% —
Payout ratio 0.00 0.18 0.00

Size

Metric NBR PTEN Oil & Gas Drilling median
Market cap 1.26b 4.21b 3.98b

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