Critical Contrast: Petrofac (OTCMKTS:POFCY) vs. Subsea 7 (OTCMKTS:SUBCY)

Subsea 7 (OTCMKTS:SUBCY) and Petrofac (OTCMKTS:POFCY) are both energy companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.

Risk & Volatility

Subsea 7 has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500. Comparatively, Petrofac has a beta of 2.84, meaning that its stock price is 184% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Subsea 7 and Petrofac, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Subsea 7	0	2	0	2	3.00
Petrofac	0	0	0	0	0.00

Given Petrofac’s higher probable upside, analysts plainly believe Petrofac is more favorable than Subsea 7.

Earnings and Valuation

This table compares Subsea 7 and Petrofac”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Subsea 7	$6.84 billion	1.09	$201.40 million	$0.96	26.27
Petrofac	$2.50 billion	0.00	-$505.00 million	N/A	N/A

Subsea 7 has higher revenue and earnings than Petrofac.

Institutional and Insider Ownership

0.0% of Subsea 7 shares are owned by institutional investors. 1.0% of Subsea 7 shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Subsea 7 and Petrofac’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Subsea 7	4.08%	6.66%	3.59%
Petrofac	N/A	N/A	N/A

Summary

Subsea 7 beats Petrofac on 9 of the 11 factors compared between the two stocks.

About Subsea 7

Subsea 7 S.A. delivers offshore projects and services for the energy industry worldwide. It provides subsea field development products and services, including project management, design and engineering, procurement, fabrication, survey, installation, and commissioning of production facilities on the seabed and the tie-back of its facilities to fixed or floating platforms or to the shore. The company also offers engineering, procurement, commissioning, and installation of subsea umbilicals, risers, and flowlines; inspection, repair, maintenance, remote intervention, and integrity management of subsea infrastructure services; conventional services comprising fabrication, installation, extension, and refurbishment of fixed and floating platforms and associated pipelines in shallow water; and hook-up services. In addition, it operates heavy lifting operations and heavy transportation services for renewables structures; and installs offshore wind turbine foundations, as well as engages in the decommissioning of redundant offshore structures. Further, the company provides remotely operated vehicles (ROVs) and tooling services to support exploration and production activities, as well as engineering and advisory services for customers in the oil and gas, renewables, and utilities industries. The company was incorporated in 1993 and is based in Luxembourg, Luxembourg.

About Petrofac

Petrofac Limited designs, builds, manages, and maintains infrastructure for the energy industries in the United Kingdom, Algeria, Thailand, Oman, Kuwait, Iraq, the United Arab Emirates, the Netherlands, and internationally. It operates through three segments: Engineering & Construction (E&C); Asset Solutions; and Integrated Energy Services (IES). The E&C segment provides onshore and offshore engineering, procurement, construction, installation, and commissioning services. The Asset Solutions segment offers concept, feasibility, and front-end engineering design services, as well as manages and maintains onshore and offshore operations. The IES segment focuses on delivering value from the existing asset portfolio. The company was founded in 1981 and is based in St Helier, Jersey.