Critical Review: PHX Energy Services (PHXHF) and Its Rivals

PHX Energy Services (OTCMKTS:PHXHF) is one of 178 publicly-traded companies in the “Energy Equipment & Services” industry, but how does it weigh in compared to its rivals? We will compare PHX Energy Services to related companies based on the strength of its risk, analyst recommendations, dividends, institutional ownership, valuation, earnings and profitability.

Analyst Recommendations

This is a breakdown of recent ratings for PHX Energy Services and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PHX Energy Services	0	0	1	0	3.00
PHX Energy Services Competitors	1693	7172	8768	473	2.44

As a group, “Energy Equipment & Services” companies have a potential upside of 17.15%. Given PHX Energy Services’ rivals higher possible upside, analysts clearly believe PHX Energy Services has less favorable growth aspects than its rivals.

Dividends

PHX Energy Services pays an annual dividend of $0.83 per share and has a dividend yield of 9.1%. PHX Energy Services pays out 62.9% of its earnings in the form of a dividend. As a group, “Energy Equipment & Services” companies pay a dividend yield of -1.9% and pay out -40.9% of their earnings in the form of a dividend.

Insider and Institutional Ownership

38.3% of PHX Energy Services shares are owned by institutional investors. Comparatively, 49.1% of shares of all “Energy Equipment & Services” companies are owned by institutional investors. 12.3% of shares of all “Energy Equipment & Services” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares PHX Energy Services and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
PHX Energy Services	N/A	N/A	6.94
PHX Energy Services Competitors	$3.15 billion	$26.09 million	26.66

PHX Energy Services’ rivals have higher revenue and earnings than PHX Energy Services. PHX Energy Services is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares PHX Energy Services and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PHX Energy Services	N/A	N/A	N/A
PHX Energy Services Competitors	-11.47%	6.17%	1.47%

Summary

PHX Energy Services rivals beat PHX Energy Services on 9 of the 13 factors compared.

PHX Energy Services Company Profile

PHX Energy Services Corp. provides horizontal and directional drilling services, rents performance drilling motors, and sells motor equipment and parts to oil and natural gas exploration and development companies in Canada, the United States, Albania, the Middle East regions, and internationally. It offers Atlas motors; Velocity Real-Time Systems that provide downhole guidance systems; Echo system; PowerDrive Orbit RSS, a rotary steerable system; performance drilling motors; P-360 Positive Pulse MWD System, a measurement while drilling (MWD) tool; and E-360 EM MWD System, a MWD tool that transmits electric signals through geological formations. The company also provides 360 CV MWD System, a clear vision tool, which surveys inclination and gamma in real-time closer to the bit; 360 RWD System, a resistivity while drilling sub; and North Seeking Gyro that offers real-time QA/QC checks downhole. In addition, it offers directional drilling and motor rentals, survey management, and Gyro surveying services. The company was formerly known as Phoenix Technology Income Fund and changed its name to PHX Energy Services Corp. PHX Energy Services Corp. was founded in 1995 and is headquartered in Calgary, Canada.