Critical Contrast: Pason Systems (OTCMKTS:PSYTF) & Pgs Asa (OTCMKTS:PGEJF)

Pason Systems (OTCMKTS:PSYTF) and Pgs Asa (OTCMKTS:PGEJF) are both energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.

Earnings and Valuation

This table compares Pason Systems and Pgs Asa’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pason Systems	N/A	N/A	N/A	$1.07	10.96
Pgs Asa	N/A	N/A	N/A	$0.34	2.35

Pgs Asa is trading at a lower price-to-earnings ratio than Pason Systems, indicating that it is currently the more affordable of the two stocks.

Dividends

Pason Systems pays an annual dividend of $0.47 per share and has a dividend yield of 4.0%. Pgs Asa pays an annual dividend of $0.29 per share and has a dividend yield of 36.3%. Pason Systems pays out 44.0% of its earnings in the form of a dividend. Pgs Asa pays out 85.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Pason Systems and Pgs Asa’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pason Systems	N/A	N/A	N/A
Pgs Asa	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings for Pason Systems and Pgs Asa, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pason Systems	0	0	2	0	3.00
Pgs Asa	0	1	0	0	2.00

Pason Systems currently has a consensus price target of $12.38, indicating a potential upside of 5.77%. Given Pason Systems’ stronger consensus rating and higher possible upside, research analysts plainly believe Pason Systems is more favorable than Pgs Asa.

Institutional and Insider Ownership

46.7% of Pason Systems shares are owned by institutional investors. Comparatively, 38.9% of Pgs Asa shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Pason Systems beats Pgs Asa on 7 of the 8 factors compared between the two stocks.

About Pason Systems

Pason Systems Inc., together with its subsidiaries, provides instrumentation and data management systems for drilling rigs in Canada, the United States, and internationally. The company provides Electronic Drilling Recorder, which provides real-time drilling data to rig site personnel; DataHub with Pason Live, which is used as the central repository for data and reports captured at the rigs for real-time; and DataLink that provides automated in-house databases, third-party analytics platforms, remote geosteering, and other remote services. It offers AutoDriller to maximize the rate of penetration and bit life; internet solutions, such as auto-aiming satellite dishes, data modems, and bandwidth management software; DAS, a rotary drilling automation and optimization software; Electronic Choke Actuator that controls the choke valve; Gas Analyzer that provides real-time compositional gas analysis; Hazardous Gas Alarm System that detects the presence of hazardous gases; Pit Volume Totalizer, which monitors mud volumes and flow rates during drilling, tripping, and casing operations; and Toolface Control, a directional automation software. In addition, the company provides phone, chat, field, and drilling optimization support, as well as proactive monitoring and office support for data integration. It serves drilling contractors and other oilfield service companies. Pason Systems Inc. was founded in 1978 and is headquartered in Calgary, Canada.

About Pgs Asa

PGS ASA, together with its subsidiaries, operates as a marine geophysical company primarily in Norway. The company provides a range of seismic and reservoir services, including data acquisition, imaging, interpretation, and field evaluation to oil and gas companies, as well as carbon storage and offshore wind markets. It also operates in the Asia Pacific, Canada, Egypt, the Americas, Angola, the United Kingdom, Greece, Cyprus, Ukraine, Brazil, South Africa, other African countries, the Middle East, and internationally. The company was formerly known as Petroleum Geo-Services ASA and changed its name to PGS ASA in May 2019. PGS ASA was founded in 1991 and is headquartered in Oslo, Norway.