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Contrasting Western Energy Services (OTCMKTS:WEEEF) and Valaris (NYSE:VAL)

Defense World ·  Oct 3, 2022 01:31

Western Energy Services (OTCMKTS:WEEEF – Get Rating) and Valaris (NYSE:VAL – Get Rating) are both oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, institutional ownership, valuation, earnings and profitability.

Valuation and Earnings

This table compares Western Energy Services and Valaris' revenue, earnings per share (EPS) and valuation.

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Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Western Energy Services $105.06 million 0.66 -$28.83 million ($18.07) -0.11
Valaris $1.23 billion 2.99 -$4.50 billion $0.61 80.23

Western Energy Services has higher earnings, but lower revenue than Valaris. Western Energy Services is trading at a lower price-to-earnings ratio than Valaris, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

84.9% of Valaris shares are held by institutional investors. 0.1% of Valaris shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for Western Energy Services and Valaris, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Western Energy Services 0 0 0 0 N/A
Valaris 0 0 0 0 N/A

Valaris has a consensus target price of $80.00, suggesting a potential upside of 63.47%. Given Valaris' higher probable upside, analysts plainly believe Valaris is more favorable than Western Energy Services.

Profitability

This table compares Western Energy Services and Valaris' net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Western Energy Services 9.53% -18.17% -7.42%
Valaris 3.39% -5.09% -2.05%

Volatility & Risk

Western Energy Services has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500. Comparatively, Valaris has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500.

Summary

Valaris beats Western Energy Services on 10 of the 12 factors compared between the two stocks.

About Western Energy Services

(Get Rating)

Western Energy Services Corp. operates as an oilfield service company in Canada and the United States. It operates through Contract Drilling and Production Services segments. The Contract Drilling segment provides contract drilling services using drilling rigs and auxiliary equipment. The Production Services segment offers well servicing rig and related equipment, as well as oilfield rental equipment services to other oilfield service companies. The company owns and operates 57 drilling rigs; and 63 service rigs. It serves crude oil and natural gas exploration and production companies. The company was incorporated in 2013 and is headquartered in Calgary, Canada.

About Valaris

(Get Rating)

Valaris Limited provides offshore contract drilling services to the international oil and gas industry. The company owns an offshore drilling rig fleet of 56 rigs, which include 11 drillships, 4 dynamically positioned semisubmersible rigs, 1 moored semisubmersible rig, and 40 jackup rigs. It serves international, government-owned, and independent oil and gas companies in the Gulf of Mexico, the North Sea, the Middle East, West Africa, Australia, and Southeast Asia. The company was incorporated in 2009 and is based in Hamilton, Bermuda.

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Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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