Subsea 7 (OTCMKTS:SUBCY) and Key Energy Services (NYSE:KEG) are both oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, profitability, dividends and risk.
Volatility and Risk
Subsea 7 has a beta of 1.52, meaning that its stock price is 52% more volatile than the S&P 500. Comparatively, Key Energy Services has a beta of 3.98, meaning that its stock price is 298% more volatile than the S&P 500.
Earnings and Valuation
This table compares Subsea 7 and Key Energy Services’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Subsea 7||$4.07 billion||0.71||$182.50 million||$0.56||16.09|
|Key Energy Services||$521.70 million||0.05||-$88.80 million||($4.53)||-0.29|
Subsea 7 has higher revenue and earnings than Key Energy Services. Key Energy Services is trading at a lower price-to-earnings ratio than Subsea 7, indicating that it is currently the more affordable of the two stocks.
This table compares Subsea 7 and Key Energy Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Key Energy Services||-18.70%||-614.21%||-21.74%|
This is a summary of current ratings for Subsea 7 and Key Energy Services, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Key Energy Services||0||4||1||0||2.20|
Key Energy Services has a consensus price target of $3.08, suggesting a potential upside of 137.18%. Given Key Energy Services’ higher possible upside, analysts plainly believe Key Energy Services is more favorable than Subsea 7.
Insider & Institutional Ownership
0.1% of Subsea 7 shares are owned by institutional investors. Comparatively, 47.9% of Key Energy Services shares are owned by institutional investors. 1.0% of Subsea 7 shares are owned by insiders. Comparatively, 1.6% of Key Energy Services shares are owned 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.
Subsea 7 beats Key Energy Services on 10 of the 14 factors compared between the two stocks.
About Subsea 7
Subsea 7 S.A. delivers offshore projects and services for the evolving 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, construction, and installation of subsea umbilicals, risers, and flowlines; life of field services, such as inspection, repair, maintenance, integrity management, and remote intervention of subsea infrastructure; conventional services comprising fabrication, installation, extension, and refurbishment of fixed and floating platforms and associated pipelines; hook-up services; and refurbishment of fixed and floating platforms in shallow water. In addition, it operates heavy lifting vessels and oil and gas structures; and installs offshore wind farm foundations and inter-array cables, 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. It has a fleet of 35 vessels; 2 vessels under construction; and 166 ROVs. Subsea 7 S.A. was incorporated in 1993 and is based in Luxembourg City, Luxembourg.
About Key Energy Services
Key Energy Services, Inc. operates as an onshore rig-based well servicing contractor in the United States. It operates through Rig Services, Fishing and Rental Services, Coiled Tubing Services, and Fluid Management Services segments. The Rig Services segment is involved in the completion of newly drilled wells; workover and recompletion of existing oil and natural gas wells; well maintenance activities; and plugging and abandonment of wells at the end of their useful lives, as well as provision of specialty drilling services to oil and natural gas producers. The Fishing and Rental Services segment provides fishing services that involve recovering lost or stuck equipment in the wellbore utilizing fishing tools; and rents drill pipes, tubulars, handling tools, pressure-control equipment, pumps, power swivels, reversing units, and foam air units. The Coiled Tubing Services segment offers services for wellbore clean-outs, nitrogen jet lifts, through-tubing fishing, and formation stimulations; mills temporary isolation plugs that separate frac zones; and other pre- and post-hydraulic fracturing well preparation services. The Fluid Management Services segment offers transportation and well-site storage services for fluids utilized in drilling, completions, workover, and maintenance activities; and disposal services for fluids produced subsequent to well completion. It also operates a fleet of hot oilers used to clear soluble restrictions in a wellbore. The company was formerly known as Key Energy Group, Inc. and changed its name to Key Energy Services, Inc. in December 1998. Key Energy Services, Inc. was founded in 1977 and is based in Houston, Texas.
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