ProPetro (NYSE:PUMP) and Drilling Tools International (NASDAQ:DTI) Head to Head Survey
by Mitch Edgeman · The Markets DailyDrilling Tools International (NASDAQ:DTI – Get Free Report) and ProPetro (NYSE:PUMP – Get Free Report) are both small-cap energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, risk, profitability, valuation, dividends, institutional ownership and analyst recommendations.
Earnings & Valuation
This table compares Drilling Tools International and ProPetro”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Drilling Tools International | $154.45 million | 0.64 | $3.01 million | ($0.19) | -14.79 |
| ProPetro | $1.44 billion | 0.68 | -$137.86 million | ($0.17) | -55.38 |
Drilling Tools International has higher earnings, but lower revenue than ProPetro. ProPetro is trading at a lower price-to-earnings ratio than Drilling Tools International, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Drilling Tools International has a beta of -0.38, suggesting that its share price is 138% less volatile than the S&P 500. Comparatively, ProPetro has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500.
Insider & Institutional Ownership
2.8% of Drilling Tools International shares are held by institutional investors. Comparatively, 84.7% of ProPetro shares are held by institutional investors. 56.5% of Drilling Tools International shares are held by insiders. Comparatively, 1.6% of ProPetro 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.
Profitability
This table compares Drilling Tools International and ProPetro’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Drilling Tools International | -3.93% | 1.12% | 0.60% |
| ProPetro | -1.31% | -0.06% | -0.04% |
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Drilling Tools International and ProPetro, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Drilling Tools International | 1 | 0 | 0 | 1 | 2.50 |
| ProPetro | 1 | 4 | 4 | 0 | 2.33 |
ProPetro has a consensus price target of $12.50, indicating a potential upside of 32.77%. Given ProPetro’s higher probable upside, analysts plainly believe ProPetro is more favorable than Drilling Tools International.
Summary
ProPetro beats Drilling Tools International on 8 of the 15 factors compared between the two stocks.
About Drilling Tools International
Drilling Tools International Corporation provides oilfield equipment and services to oil and natural gas sectors in North America, Europe, and the Middle East. It offers downhole tool rentals, machining, and inspection services to support the global drilling and wellbore construction industry. The company also provides products are bottom hole assembly components, such as stabilizers, subs, non-magnetic and steel drill collars, hole openers, and roller reamers, as well as drill pipe and drill pipe accessories; ancillary equipment and handling tools to support its rental platform, including float valves, ring gauges, tool baskets, lift bail, lift subs, mud magnets, elevators, bracket and bail assemblies, slips, tongs, stabbing guides and safety clamps; and blowout preventers, and pressure control accessory equipment. In addition, it offers tool rental services, which consists of rental, inspection, machining, and repair services; rents downhole drilling tools used in horizontal and directional drilling of oil and natural gas; rents kellys, pip joints, work strings; maintains a fleet of rental equipment consisting of drill collars, stabilizers, crossover subs, wellbore conditioning tools, drill pipe, hevi-wate drill pipe, and tubing; rents surface control equipment, such as blowout preventers and handling tools; and provides downhole products for producing wells. Drilling Tools International Corporation is headquartered in Houston, Texas.
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.