Head to Head Review: Precision Drilling (NYSE:PDS) vs. Forum Energy Technologies (NYSE:FET)

Forum Energy Technologies (NYSE:FET) and Precision Drilling (NYSE:PDS) are both small-cap energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Profitability

This table compares Forum Energy Technologies and Precision Drilling’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Forum Energy Technologies	-0.19%	9.45%	3.58%
Precision Drilling	-1.68%	2.11%	1.24%

Analyst Ratings

This is a summary of current ratings and recommmendations for Forum Energy Technologies and Precision Drilling, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Forum Energy Technologies	1	0	0	1	2.50
Precision Drilling	2	1	4	1	2.50

Precision Drilling has a consensus target price of $122.33, suggesting a potential upside of 33.28%. Given Precision Drilling’s higher probable upside, analysts plainly believe Precision Drilling is more favorable than Forum Energy Technologies.

Institutional & Insider Ownership

65.6% of Forum Energy Technologies shares are held by institutional investors. Comparatively, 48.9% of Precision Drilling shares are held by institutional investors. 7.7% of Forum Energy Technologies shares are held by insiders. Comparatively, 0.9% of Precision Drilling shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Forum Energy Technologies has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500. Comparatively, Precision Drilling has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500.

Earnings and Valuation

This table compares Forum Energy Technologies and Precision Drilling”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Forum Energy Technologies	$791.47 million	1.11	-$9.66 million	($0.15)	-518.80
Precision Drilling	$1.32 billion	0.89	$1.32 million	($2.09)	-43.92

Precision Drilling has higher revenue and earnings than Forum Energy Technologies. Forum Energy Technologies is trading at a lower price-to-earnings ratio than Precision Drilling, indicating that it is currently the more affordable of the two stocks.

Summary

Forum Energy Technologies beats Precision Drilling on 7 of the 13 factors compared between the two stocks.

About Forum Energy Technologies

Forum Energy Technologies, Inc. designs, manufactures, and distributes products serving the oil, natural gas, industrial, and renewable energy industries in the United States and internationally. It operates through three segments: Drilling & Downhole, Completions, and Production. The Drilling & Downhole segment designs, manufactures, and supplies products, and provides related services to the drilling, well construction, artificial lift, and subsea energy construction and services markets, including applications in oil and natural gas, renewable energy, defense, and communications. This segment offers drilling technologies consisting of capital equipment and a line of products consumed in the drilling process; well construction casing and cementing equipment, and products for artificial lift equipment and cables; and subsea remotely operated vehicles and trenchers, submarine rescue vehicles, specialty components and tools, and technical services. The Completions segment offers hydraulic fracturing pumps, cooling systems, high-pressure flexible hoses, and flow iron for pressure pumping markets; wireline cable and pressure control equipment for well completion and intervention service markets; and coiled tubing strings and coiled line pipe and related services. The Production segment designs, manufactures, and supplies products, and provides related equipment and services for production and infrastructure markets. This segment offers engineered process systems, production equipment, specialty separation equipment, and various industrial valves for oil and natural gas customers, power generation, renewable energy, and other general industrial applications. The company was formerly known as Forum Oilfield Technologies, Inc. and changed its name to Forum Energy Technologies, Inc. in August 2010. Forum Energy Technologies, Inc. was incorporated in 2005 and is headquartered in Houston, Texas.

About Precision Drilling

Precision Drilling Corporation, a drilling company, provides onshore drilling, completion, and production services to exploration and production companies in the oil and natural gas and geothermal industries in North America and the Middle East. The company operates through Contract Drilling Services and Completion and Production Services segments. The Contract Drilling Services segment offers onshore well drilling services to exploration and production companies in the geothermal, oil and natural gas industry. This segment offers services include land and turnkey drilling; and procurement and distribution of oilfield supplies, as well as manufacture and repair of drilling and service rig equipment. In addition, it operates land drilling rigs in Canada, the United States, and the Middle East, as well as operates AlphaAutomation, AlphaApps, and AlphaAnalytics data services. The company offers EverGreen suite of environmental solutions comprising EverGreenMonitoring, EverGreenEnergy, and EverGreen Fuel Cell. The Completion and Production Services segment provides service rigs for well completion, workover, abandonment, maintenance, and re-entry preparation services; equipment rentals; and camp and catering services to oil and natural gas exploration and production companies. This segment operates well completion and workover service rigs in Canada and the United States. Precision Drilling Corporation was founded in 1951 and is headquartered in Calgary, Canada.