Financial Comparison: Precision Drilling (NYSE:PDS) and Solar Integrated Roofing (OTCMKTS:SIRC)

Precision Drilling (NYSE:PDS) and Solar Integrated Roofing (OTCMKTS:SIRC) are both small-cap energy companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Risk & Volatility

Precision Drilling has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500. Comparatively, Solar Integrated Roofing has a beta of 0.04, suggesting that its stock price is 96% less volatile than the S&P 500.

Insider & Institutional Ownership

48.9% of Precision Drilling shares are held by institutional investors. 1.0% of Precision Drilling shares are held by insiders. Comparatively, 4.3% of Solar Integrated Roofing shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for Precision Drilling and Solar Integrated Roofing, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Precision Drilling	0	1	1	0	2.50
Solar Integrated Roofing	0	0	0	0	0.00

Precision Drilling presently has a consensus target price of $112.00, indicating a potential upside of 183.04%. Given Precision Drilling’s stronger consensus rating and higher probable upside, analysts clearly believe Precision Drilling is more favorable than Solar Integrated Roofing.

Earnings and Valuation

This table compares Precision Drilling and Solar Integrated Roofing”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Precision Drilling	$1.90 billion	0.28	$81.15 million	$5.38	7.36
Solar Integrated Roofing	$37.31 million	0.03	-$27.40 million	($0.03)	0.00

Precision Drilling has higher revenue and earnings than Solar Integrated Roofing. Solar Integrated Roofing is trading at a lower price-to-earnings ratio than Precision Drilling, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Precision Drilling and Solar Integrated Roofing’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Precision Drilling	5.87%	6.72%	3.78%
Solar Integrated Roofing	-623.62%	N/A	N/A

Summary

Precision Drilling beats Solar Integrated Roofing on 13 of the 14 factors compared between the two stocks.

About Precision Drilling

Precision Drilling Corporation, a drilling company, provides onshore drilling, completion, and production services to exploration and production companies in the oil and natural gas and geothermal industries in North America and the Middle East. The company operates through Contract Drilling Services and Completion and Production Services segments. The Contract Drilling Services segment offers onshore well drilling services to exploration and production companies in the geothermal, oil and natural gas industry. This segment offers services include land and turnkey drilling; and procurement and distribution of oilfield supplies, as well as manufacture and repair of drilling and service rig equipment. In addition, it operates land drilling rigs in Canada, the United States, and the Middle East, as well as operates AlphaAutomation, AlphaApps, and AlphaAnalytics data services. The company offers EverGreen suite of environmental solutions comprising EverGreenMonitoring, EverGreenEnergy, and EverGreen Fuel Cell. The Completion and Production Services segment provides service rigs for well completion, workover, abandonment, maintenance, and re-entry preparation services; equipment rentals; and camp and catering services to oil and natural gas exploration and production companies. This segment operates well completion and workover service rigs in Canada and the United States. Precision Drilling Corporation was founded in 1951 and is headquartered in Calgary, Canada.

About Solar Integrated Roofing

Solar Integrated Roofing Corp. provides integrated, single-source solar power and roofing systems installation services for commercial and residential properties in the United States. It offers battery backup, electric vehicle charging, roofing, and related HVAC/electrical contracting works; and sells solar panels. The company was formerly known as Landstar Development Group, Inc. and changed its name to Solar Integrated Roofing Corp. in November 2015. Solar Integrated Roofing Corp. was incorporated in 2007 and is based in Henderson, Nevada.