Financial Contrast: Nabors Industries (NYSE:NBR) vs. HighPeak Energy (NASDAQ:HPK)

Nabors Industries (NYSE:NBR) and HighPeak Energy (NASDAQ:HPK) are both small-cap oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, institutional ownership, earnings, profitability, risk and analyst recommendations.

Institutional and Insider Ownership

60.8% of Nabors Industries shares are held by institutional investors. Comparatively, 2.2% of HighPeak Energy shares are held by institutional investors. 4.9% of Nabors Industries shares are held by company insiders. Comparatively, 89.6% of HighPeak Energy shares are held by company 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.

Volatility & Risk

Nabors Industries has a beta of 3.6, suggesting that its stock price is 260% more volatile than the S&P 500. Comparatively, HighPeak Energy has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500.

Valuation & Earnings

This table compares Nabors Industries and HighPeak Energy’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nabors Industries $2.14 billion 0.44 -$805.64 million ($80.90) -1.36
HighPeak Energy $24.62 million 36.55 -$101.46 million N/A N/A

HighPeak Energy has lower revenue, but higher earnings than Nabors Industries.

Analyst Ratings

This is a breakdown of current ratings for Nabors Industries and HighPeak Energy, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nabors Industries 4 2 0 0 1.33
HighPeak Energy 0 0 0 0 N/A

Nabors Industries presently has a consensus price target of $43.90, suggesting a potential downside of 60.23%. Given Nabors Industries’ higher possible upside, equities research analysts clearly believe Nabors Industries is more favorable than HighPeak Energy.

Profitability

This table compares Nabors Industries and HighPeak Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nabors Industries -29.27% -41.51% -9.66%
HighPeak Energy N/A -3.30% -2.82%

Summary

HighPeak Energy beats Nabors Industries on 6 of the 10 factors compared between the two stocks.

About Nabors Industries

Nabors Industries Ltd. provides drilling and drilling-related services for land-based and offshore oil and natural gas wells. The company operates through five segments: U.S. Drilling, Canada Drilling, International Drilling, Drilling Solutions, and Rig Technologies. It provides tubular running, wellbore placement, directional drilling, measurement-while-drilling (MWD), equipment manufacturing, and rig instrumentation services; and logging-while-drilling systems and services, as well as drilling optimization software. The company also offers REVit, an automated real time stick-slip mitigation system; ROCKit, a directional steering control system; SmartNAV, a collaborative guidance and advisory platform; SmartSLIDE, an advanced directional steering control system; and RigCLOUD, which provides the tools and infrastructure to integrate applications to deliver real-time insight into operations across the rig fleet. In addition, it manufactures and sells top drives, catwalks, wrenches, drawworks, and other drilling related equipment, such as robotic systems and downhole tools; and provides aftermarket sales and services for the installed base of its equipment. As of December 31, 2020, the company marketed approximately 354 rigs for land-based drilling operations in the United States and Canada, as well as in 14 other countries worldwide; and 29 rigs for offshore platform drilling operations in the United States and internationally. Nabors Industries Ltd. was founded in 1952 and is headquartered in Hamilton, Bermuda.

About HighPeak Energy

HighPeak Energy, Inc., an independent oil and natural gas company, engages in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids reserves in the Midland Basin in West Texas. As of December 31, 2020, the company had approximately 22,515 MBoe of proved reserves. HighPeak Energy, Inc. was founded in 2019 and is headquartered in Fort Worth, Texas.

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