ProPetro (NYSE:PUMP) & Subsea 7 (OTC:SUBCY) Financial Contrast

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

Institutional and Insider Ownership

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

Earnings and Valuation

This table compares Subsea 7 and ProPetro”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Subsea 7	$5.97 billion	0.65	$15.40 million	$0.67	19.30
ProPetro	$1.44 billion	0.38	$85.63 million	($1.34)	-3.92

ProPetro has lower revenue, but higher earnings 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 and Volatility

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

Profitability

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

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for Subsea 7 and ProPetro, as reported by MarketBeat.

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

ProPetro has a consensus price target of $10.75, suggesting a potential upside of 104.57%. Given ProPetro’s stronger consensus rating and higher probable upside, analysts clearly believe ProPetro is more favorable than Subsea 7.

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.

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.