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 $5.4B against $3.8B — 1.4× the size. Patterson-UTI Energy, Inc. has negative trailing earnings, so its P/E is not meaningful; Valaris Limited trades at 6.8×. Patterson-UTI Energy, Inc. grew revenue faster over the last twelve months: 0.01% against −11.6%. Valaris Limited has the higher net margin (37.4% vs −0.52%) and the higher return on invested capital (3.13% vs 0.66%). Across the 19 metrics below, Valaris Limited leads on 10 and Patterson-UTI Energy, Inc. on 9.

Valuation

Metric PTEN VAL Oil & Gas Drilling median
P/E n/m 6.80 —
P/S 0.79 2.54 1.19
P/B 1.24 1.66 1.24
Price to free cash flow 11.35 n/m 14.65
EV/EBITDA 5.14 23.16 6.73
EV/Sales 0.98 3.98 2.12
Earnings yield (0.60%) 14.71% (0.70%)
Free cash flow yield 8.81% (1.89%) 3.79%

Profitability

Metric PTEN VAL Oil & Gas Drilling median
Gross margin 24.07% 24.16% 33.60%
Operating margin 0.86% 8.98% 8.58%
Net margin (0.52%) 37.35% (0.52%)
Free cash flow margin 6.98% (4.80%) 6.98%
Return on equity (0.79%) 27.89% (0.79%)
Return on assets (0.45%) 15.76% (0.45%)
Return on invested capital 0.66% 3.13% 2.81%

Growth

Metric PTEN VAL Oil & Gas Drilling median
Revenue growth (TTM) 0.01% (11.61%) 3.33%
EPS growth (last fiscal year) 90.16% 172.18% (46.88%)
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 0.33 0.59
Current ratio 1.73 1.64 1.76
Net debt to EBITDA 0.90 0.78 0.90

Dividend

Metric PTEN VAL Oil & Gas Drilling median
Dividend yield 3.78% — —
Payout ratio — — —

Size

Metric PTEN VAL Oil & Gas Drilling median
Market cap 3.78b 5.37b 3.61b

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