Comparing AKITA Drilling (OTCMKTS:AKTAF) & Nabors Industries (NYSE:NBR)

AKITA Drilling (OTCMKTS:AKTAF) and Nabors Industries (NYSE:NBR) are both energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, dividends, valuation and analyst recommendations.

Dividends

AKITA Drilling pays an annual dividend of $0.34 per share and has a dividend yield of 32.5%. Nabors Industries pays an annual dividend of $0.04 per share and has a dividend yield of 0.0%. AKITA Drilling pays out 25.5% of its earnings in the form of a dividend. Nabors Industries pays out -0.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Recommendations

This is a summary of recent recommendations for AKITA Drilling and Nabors Industries, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AKITA Drilling	0	0	0	0	N/A
Nabors Industries	0	4	2	0	2.33

Nabors Industries has a consensus price target of $108.50, indicating a potential upside of 34.88%. Given Nabors Industries’ higher probable upside, analysts plainly believe Nabors Industries is more favorable than AKITA Drilling.

Insider and Institutional Ownership

29.2% of AKITA Drilling shares are owned by institutional investors. Comparatively, 81.9% of Nabors Industries shares are owned by institutional investors. 7.3% of Nabors Industries shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares AKITA Drilling and Nabors Industries’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AKITA Drilling	N/A	N/A	N/A	$1.32	0.78
Nabors Industries	$2.93 billion	0.29	-$11.78 million	($13.81)	-5.82

AKITA Drilling has higher earnings, but lower revenue than Nabors Industries. Nabors Industries is trading at a lower price-to-earnings ratio than AKITA Drilling, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares AKITA Drilling and Nabors Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AKITA Drilling	N/A	N/A	N/A
Nabors Industries	-4.73%	-28.10%	-3.08%

About AKITA Drilling

AKITA Drilling Ltd. operates as an oil and gas drilling contractor in Canada and the United States. It is involved in the drilling oil and gas wells, potash exploration and development wells, geothermal wells, disposal wells, and carbon storage wells, as well as wells to be developed into storage caverns for gas. The company was founded in 1964 and is headquartered in Calgary, Canada. AKITA Drilling Ltd. operates as a subsidiary of Sentgraf Enterprises Ltd.

About Nabors Industries

Nabors Industries Ltd. provides drilling and drilling-related services for land-based and offshore oil and natural gas wells in the United States and internationally. The company operates through four segments: U.S. Drilling, International Drilling, Drilling Solutions, and Rig Technologies. It provides tubular running services, including casing and tubing running, and torque monitoring; managed pressure drilling services; and drilling-bit steering systems and rig instrumentation software. The company also offers drilling systems comprising ROCKit, a directional steering control system; SmartNAV, a collaborative guidance and advisory platform; SmartSLIDE, a directional steering control system; and RigCLOUD, a digital infrastructure to integrate applications to deliver real-time insight into operations across the rig fleet. In addition, it operates a fleet of land-based drilling rigs and marketed platforms rigs; 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. Nabors Industries Ltd. was founded in 1952 and is based in Hamilton, Bermuda.