Patterson-UTI Energy, Inc. (PTEN) vs Valaris Limited (VAL)

Patterson-UTI Energy, Inc. and Valaris Limited are both Oil & Gas Drilling companies. Valaris Limited is the larger, with a market value of $5.7B against $4.2B — 1.3× the size. Patterson-UTI Energy, Inc. has negative trailing earnings, so its P/E is not meaningful; Valaris Limited trades at 6.0×. Patterson-UTI Energy, Inc. grew revenue faster over the last twelve months: −6.92% against −13.2%. Valaris Limited has the higher net margin (44.0% vs −1.92%) and the higher return on invested capital (4.00% vs −0.75%). Across the 20 metrics below, Valaris Limited leads on 11 and Patterson-UTI Energy, Inc. on 9.

Valuation

Metric PTEN VAL Oil & Gas Drilling median
P/E n/m 6.01 —
P/S 0.89 2.63 1.37
P/B 1.34 1.74 1.35
Price to free cash flow 19.94 38.31 15.47
EV/EBITDA 6.23 21.37 8.26
EV/Sales 1.11 4.06 2.31
Earnings yield (2.10%) 16.63% (2.10%)
Free cash flow yield 5.01% 2.61% 3.40%

Profitability

Metric PTEN VAL Oil & Gas Drilling median
Gross margin 23.76% 24.78% 39.29%
Operating margin (1.06%) 11.27% 7.77%
Net margin (1.92%) 43.95% 0.00%
Free cash flow margin 4.46% 6.85% 4.46%
Return on equity (2.78%) 33.85% (2.78%)
Return on assets (1.64%) 18.88% (1.64%)
Return on invested capital (0.75%) 4.00% 2.29%

Growth

Metric PTEN VAL Oil & Gas Drilling median
Revenue growth (TTM) (6.92%) (13.22%) 4.14%
EPS growth (last fiscal year) 90.16% 172.18% —
Revenue growth, 5-year CAGR 33.83% 10.67% 13.40%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric PTEN VAL Oil & Gas Drilling median
Debt to equity 0.40 0.34 0.61
Current ratio 1.75 1.55 1.89
Net debt to EBITDA 0.90 0.78 0.90

Dividend

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

Size

Metric PTEN VAL Oil & Gas Drilling median
Market cap 4.21b 5.68b 3.98b

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