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

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

Analyst Ratings

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

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

Valuation and Earnings

This table compares Subsea 7 and ProPetro”s revenue, earnings per share (EPS) 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.

Volatility & Risk

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

Insider & Institutional Ownership

0.0% of Subsea 7 shares are owned by institutional investors. Comparatively, 84.7% of ProPetro shares are owned by institutional investors. 1.0% of Subsea 7 shares are owned by company insiders. Comparatively, 0.9% of ProPetro shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

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.