Subsea 7 (OTC:SUBCY) versus ProPetro (NYSE:PUMP) Financial Analysis

ProPetro (NYSE:PUMP) and Subsea 7 (OTC:SUBCY) are both energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.

Profitability

This table compares ProPetro and Subsea 7’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ProPetro	-9.55%	3.20%	2.09%
Subsea 7	2.46%	3.72%	1.98%

Institutional & Insider Ownership

84.7% of ProPetro shares are held by institutional investors. Comparatively, 0.0% of Subsea 7 shares are held by institutional investors. 0.9% of ProPetro shares are held by insiders. Comparatively, 1.0% of Subsea 7 shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares ProPetro and Subsea 7″s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ProPetro	$1.44 billion	0.34	$85.63 million	($1.34)	-3.58
Subsea 7	$5.97 billion	0.65	$15.40 million	$0.67	19.12

ProPetro has higher earnings, but lower revenue than Subsea 7. ProPetro is trading at a lower price-to-earnings ratio than Subsea 7, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

ProPetro has a beta of 1.58, suggesting that its share price is 58% more volatile than the S&P 500. Comparatively, Subsea 7 has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for ProPetro and Subsea 7, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ProPetro	0	3	2	0	2.40
Subsea 7	0	1	0	0	2.00

ProPetro presently has a consensus target price of $10.75, suggesting a potential upside of 124.19%. Given ProPetro’s stronger consensus rating and higher possible upside, equities analysts plainly believe ProPetro is more favorable than Subsea 7.

About ProPetro

ProPetro Holding Corp. operates as an integrated oilfield services company. The company provides hydraulic fracturing, wireline, cementing, and other complementary oilfield completion services to upstream oil and gas companies in the Permian Basin. ProPetro Holding Corp. was founded in 2007 and is headquartered in Midland, Texas.

About Subsea 7

Subsea 7 S.A. delivers offshore projects and services for the energy industry worldwide. It provides subsea field development products and services, including project management, design and engineering, procurement, fabrication, survey, installation, and commissioning of production facilities on the seabed and the tie-back of its facilities to fixed or floating platforms or to the shore. The company also offers engineering, procurement, commissioning, and installation of subsea umbilicals, risers, and flowlines; inspection, repair, maintenance, remote intervention, and integrity management of subsea infrastructure services; conventional services comprising fabrication, installation, extension, and refurbishment of fixed and floating platforms and associated pipelines in shallow water; and hook-up services. In addition, it operates heavy lifting operations and heavy transportation services for renewables structures; and installs offshore wind turbine foundations, as well as engages in the decommissioning of redundant offshore structures. Further, the company provides remotely operated vehicles (ROVs) and tooling services to support exploration and production activities, as well as engineering and advisory services for customers in the oil and gas, renewables, and utilities industries. The company was incorporated in 1993 and is based in Luxembourg, Luxembourg.