Atwood Oceanics (ATW) & Helmerich & Payne (HP) Critical Survey

Atwood Oceanics (NYSE: ATW) and Helmerich & Payne (NYSE:HP) are both energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, profitability, risk, analyst recommendations, valuation and dividends.

Insider & Institutional Ownership

92.0% of Atwood Oceanics shares are owned by institutional investors. 1.2% of Atwood Oceanics shares are owned by company insiders. Comparatively, 4.2% of Helmerich & Payne 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.

Dividends

Helmerich & Payne pays an annual dividend of $2.80 per share and has a dividend yield of 4.6%. Atwood Oceanics does not pay a dividend. Helmerich & Payne pays out -235.3% of its earnings in the form of a dividend. Helmerich & Payne has raised its dividend for 44 consecutive years.

Profitability

This table compares Atwood Oceanics and Helmerich & Payne’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Atwood Oceanics -3.71% -0.51% -0.36%
Helmerich & Payne -7.16% -2.96% -1.95%

Analyst Recommendations

This is a summary of recent ratings and price targets for Atwood Oceanics and Helmerich & Payne, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Atwood Oceanics 3 12 4 0 2.05
Helmerich & Payne 7 14 3 0 1.83

Atwood Oceanics currently has a consensus price target of $11.23, indicating a potential upside of 20.52%. Helmerich & Payne has a consensus price target of $54.33, indicating a potential downside of 11.18%. Given Atwood Oceanics’ stronger consensus rating and higher possible upside, analysts plainly believe Atwood Oceanics is more favorable than Helmerich & Payne.

Earnings and Valuation

This table compares Atwood Oceanics and Helmerich & Payne’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Atwood Oceanics N/A N/A N/A ($0.21) -44.38
Helmerich & Payne $1.80 billion 3.68 -$128.21 million ($1.19) -51.40

Atwood Oceanics has higher earnings, but lower revenue than Helmerich & Payne. Helmerich & Payne is trading at a lower price-to-earnings ratio than Atwood Oceanics, indicating that it is currently the more affordable of the two stocks.

Summary

Atwood Oceanics beats Helmerich & Payne on 8 of the 13 factors compared between the two stocks.

About Atwood Oceanics

Atwood Oceanics, Inc. is an offshore drilling company engaged in the drilling and completion of exploration and development wells for the global oil and gas industry. The Company owns various types of drilling rigs, such as Ultra-Deepwater Rigs, Deepwater Semisubmersibles and Jackups. Its Ultra-deepwater Rigs and Deepwater Semisubmersibles include Atwood Achiever, Atwood Archer, Atwood Admiral, Atwood Advantage, Atwood Condor, Atwood Eagle and Atwood Osprey. Its Jackup Rigs included Atwood Mako, Atwood Manta, Atwood Aurora, Atwood Beacon and Atwood Orca. The Atwood Mako and Atwood Manta, both approximately 400-foot water depth Pacific Class jackup rigs, are operating offshore Vietnam and offshore Thailand. The Atwood Aurora, an approximately 350-foot water depth jackup, is operating offshore West Africa. The Atwood Beacon, an approximately 400-foot water depth jackup, is operating in the Mediterranean Sea.

About Helmerich & Payne

Helmerich & Payne, Inc. is engaged in contract drilling of oil and gas wells for others. The Company operates in the contract drilling industry. The Company’s contract drilling business consists of three segments: U.S. Land, Offshore and International Land. The Company is also engaged in the ownership, development and operation of commercial real estate and the research and development of rotary steerable technology. Its real estate investments are located within Tulsa, Oklahoma, and include a shopping center containing approximately 441,000 leasable square feet, multi-tenant industrial warehouse properties containing approximately one million leasable square feet and approximately 210 acres of undeveloped real estate. The Company provides drilling rigs, equipment, personnel and camps on a contract basis. The Company’s subsidiaries include Helmerich & Payne International Drilling Co. and Helmerich & Payne de Venezuela, C.A.

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