Union Drilling (UDRL) vs. Its Peers Critical Analysis

Union Drilling (NASDAQ: UDRL) is one of 16 public companies in the “Oil & Gas Drilling” industry, but how does it compare to its peers? We will compare Union Drilling to related businesses based on the strength of its profitability, valuation, risk, institutional ownership, earnings, analyst recommendations and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
Union Drilling N/A N/A N/A
Union Drilling Competitors -19.63% -6.20% -1.67%

Risk and Volatility

Union Drilling has a beta of 2, meaning that its share price is 100% more volatile than the S&P 500. Comparatively, Union Drilling’s peers have a beta of 1.94, meaning that their average share price is 94% more volatile than the S&P 500.

Insider and Institutional Ownership

73.7% of shares of all “Oil & Gas Drilling” companies are held by institutional investors. 2.2% of shares of all “Oil & Gas Drilling” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

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

Gross Revenue NetIncome Price/Earnings Ratio
Union Drilling N/A N/A 163.75
Union Drilling Competitors $1.59 billion -$49.50 million -0.17

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

Analyst Ratings

This is a breakdown of recent recommendations for Union Drilling and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Union Drilling 0 0 0 0 N/A
Union Drilling Competitors 496 1560 1258 57 2.26

As a group, “Oil & Gas Drilling” companies have a potential upside of 15.99%. Given Union Drilling’s peers higher possible upside, analysts clearly believe Union Drilling has less favorable growth aspects than its peers.

About Union Drilling

Operates an oil and gas land drilling company. The Company provides contract land drilling services and equipment to natural gas producers. the principal operations are in the Appalachian basin, extending from New York to Tennessee, the Arkoma basin in eastern Oklahoma and western Arkansas, the fort worth basin in northern Texas, the perchance basin in western Colorado and the Uinta basin in eastern Utah. It has increased the size of fleet to 76 land drilling rigs, of which 70 are marketed and six are stacked in. It operates in United States and Canada.

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