Comparing RPC (RES) & Its Rivals

RPC (NYSE: RES) is one of 57 public companies in the “Oil Related Services and Equipment” industry, but how does it compare to its peers? We will compare RPC to similar companies based on the strength of its earnings, risk, valuation, analyst recommendations, profitability, institutional ownership and dividends.

Dividends

RPC pays an annual dividend of $0.11 per share and has a dividend yield of 0.5%. RPC pays out -183.3% of its earnings in the form of a dividend. As a group, “Oil Related Services and Equipment” companies pay a dividend yield of 2.8% and pay out -61.4% of their earnings in the form of a dividend. RPC has increased its dividend for 4 consecutive years.

Institutional and Insider Ownership

38.2% of RPC shares are held by institutional investors. Comparatively, 66.9% of shares of all “Oil Related Services and Equipment” companies are held by institutional investors. 73.5% of RPC shares are held by company insiders. Comparatively, 12.7% of shares of all “Oil Related Services and Equipment” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares RPC and its peers revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
RPC $1.09 billion $155.79 million -379.44
RPC Competitors $2.00 billion $268.97 million -37.03

RPC’s peers have higher revenue and earnings than RPC. RPC is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of recent ratings and target prices for RPC and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RPC 0 12 7 0 2.37
RPC Competitors 390 2025 2891 114 2.50

RPC presently has a consensus price target of $23.36, indicating a potential upside of 2.60%. As a group, “Oil Related Services and Equipment” companies have a potential upside of 24.44%. Given RPC’s peers stronger consensus rating and higher possible upside, analysts clearly believe RPC has less favorable growth aspects than its peers.

Volatility & Risk

RPC has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500. Comparatively, RPC’s peers have a beta of 1.60, indicating that their average stock price is 60% more volatile than the S&P 500.

Profitability

This table compares RPC and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RPC -1.15% -1.74% -1.36%
RPC Competitors -18.08% -16.96% -5.76%

Summary

RPC peers beat RPC on 9 of the 14 factors compared.

About RPC

RPC, Inc. (RPC) is a holding company for several oilfield services companies. The Company provides a range of specialized oilfield services and equipment primarily to independent oil and gas companies engaged in the exploration, production and development of oil and gas properties throughout the United States, including the southwest, mid-continent, Gulf of Mexico, Rocky Mountain and Appalachian regions, and in selected international markets. The Company’s segments are Technical Services and Support Services. The Technical Services segment consists primarily of pressure pumping, downhole tools, coiled tubing, snubbing, nitrogen, well control, wireline and fishing. Its Support Services include all of the services that provide equipment for customers’ use on the well site without RPC personnel and services that are provided in support of customer operations off the well site, such as classroom and computer training, and other consulting services.

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