Critical Comparison: Dril-Quip (NYSE:DRQ) vs. Hunting (OTCMKTS:HNTIF)

Dril-Quip (NYSE:DRQ) and Hunting (OTCMKTS:HNTIF) are both energy companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, risk and profitability.

Valuation and Earnings

This table compares Dril-Quip and Hunting’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dril-Quip	$474.23 million	1.16	$600,000.00	($0.64)	-24.91
Hunting	N/A	N/A	N/A	$0.76	7.41

Dril-Quip has higher revenue and earnings than Hunting. Dril-Quip is trading at a lower price-to-earnings ratio than Hunting, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

46.6% of Hunting shares are owned by institutional investors. 1.7% of Dril-Quip shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Dril-Quip and Hunting, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dril-Quip	1	0	1	0	2.00
Hunting	0	0	0	0	N/A

Dril-Quip presently has a consensus price target of $30.50, suggesting a potential upside of 91.34%. Given Dril-Quip’s higher probable upside, equities research analysts plainly believe Dril-Quip is more favorable than Hunting.

Profitability

This table compares Dril-Quip and Hunting’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dril-Quip	-5.69%	-2.48%	-2.12%
Hunting	N/A	N/A	N/A

Summary

Hunting beats Dril-Quip on 6 of the 10 factors compared between the two stocks.

About Dril-Quip

Dril-Quip, Inc., together with its subsidiaries, designs, manufactures, sells, and services engineered drilling and production equipment for offshore and onshore applications worldwide. The company’s principal products include subsea and surface wellheads, specialty connectors and associated pipes, subsea production trees and systems, mudline hanger systems, production riser systems, dry tree systems, subsea manifolds, line hangers and expandable liner systems, multi-frac well connections, conventional wellheads, thermal wellheads, completion packers, and safety and kelly valves; and rig equipment comprises drilling riser systems, wellhead connectors, diverters, and cement manifolds. It also provides technical advisory assistance, and rework and reconditioning services, as well as rental and purchase of running tools for use in the installation and retrieval of its products; equipment installation and monitoring, storage, maintenance, and repair services; and downhole tools comprise of liner hangers, production packers, safety valves, and specialty downhole tools that are used to hang-off and seal casing into a previously installed casing string in the well bore. The company’s products are used in the exploration and production of oil and gas from offshore drilling rigs, such as floating rigs and jack-up rigs; and for drilling and production of oil and gas wells on offshore platforms, tension leg platforms, Spars, and moored vessels, such as floating production, storage, and offloading monohull moored vessels. It sells its products directly through its sales personnel, independent sales agents, and representatives to integrated, independent, and foreign national oil and gas companies, as well as drilling and other oilfield contractors, and engineering and construction companies. Dril-Quip, Inc. was founded in 1981 and is headquartered in Houston, Texas.

About Hunting

Hunting PLC, together with its subsidiaries, manufactures components, technology systems, and precision parts worldwide. It operates in five segments: Hunting Titan; North America; Subsea Technologies; EMEA; and Asia Pacific. The company designs and manufactures perforating systems, energetics, instrumentation, and associated hardware; connection technology and OCTG; subsea technologies; supplies highly engineered tubular components, hollow rotating shafts, very accurate deep hole drilling, plus complex turned, and milled profiles; well intervention equipment; and well test and process systems. It also manufactures electronic parts for the energy, medical, defense, and aerospace sectors; provides trenchless technologies, which include drill pipe, tooling products, and conversion roadmaps; and innovative MWD solutions for gyro, steering tool, and running gear; and organic oil recovery technology. The company serves its products to energy, aerospace and defense, telecommunications, utilities, commercial, medical, and transportation industries. Hunting PLC was founded in 1874 and is headquartered in London, the United Kingdom.