Critical Comparison: Precision Drilling (NYSE:PDS) vs. Solar Integrated Roofing (OTCMKTS:SIRC)

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

Analyst Ratings

This is a summary of current recommendations and price targets for Solar Integrated Roofing and Precision Drilling, as provided by MarketBeat.com.

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

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

Risk & Volatility

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

Profitability

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

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

Earnings & Valuation

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

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

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.

Institutional and Insider Ownership

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

Summary

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

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.

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.