Pason Systems (OTCMKTS:PSYTF) and Petrofac (OTCMKTS:POFCF) Critical Survey

Petrofac (OTCMKTS:POFCF) and Pason Systems (OTCMKTS:PSYTF) are both energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, profitability, valuation and earnings.

Insider & Institutional Ownership

33.6% of Petrofac shares are held by institutional investors. Comparatively, 46.7% of Pason Systems shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

Petrofac pays an annual dividend of $0.66 per share. Pason Systems pays an annual dividend of $0.47 per share and has a dividend yield of 4.5%. Petrofac pays out 41.6% of its earnings in the form of a dividend. Pason Systems pays out 44.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Petrofac and Pason Systems, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Petrofac	0	0	0	0	0.00
Pason Systems	0	0	2	0	3.00

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

Valuation and Earnings

This table compares Petrofac and Pason Systems”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Petrofac	N/A	N/A	N/A	$1.58	N/A
Pason Systems	N/A	N/A	N/A	$1.07	9.75

Petrofac is trading at a lower price-to-earnings ratio than Pason Systems, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Petrofac and Pason Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Petrofac	N/A	N/A	N/A
Pason Systems	N/A	N/A	N/A

Summary

Pason Systems beats Petrofac on 5 of the 8 factors compared between the two stocks.

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 Saint Helier, Jersey.

About Pason Systems

Pason Systems Inc., together with its subsidiaries, provides instrumentation and data management systems for drilling rigs in Canada, the United States, and internationally. The company provides Electronic Drilling Recorder, which provides real-time drilling data to rig site personnel; DataHub with Pason Live, which is used as the central repository for data and reports captured at the rigs for real-time; and DataLink that provides automated in-house databases, third-party analytics platforms, remote geosteering, and other remote services. It offers AutoDriller to maximize the rate of penetration and bit life; internet solutions, such as auto-aiming satellite dishes, data modems, and bandwidth management software; DAS, a rotary drilling automation and optimization software; Electronic Choke Actuator that controls the choke valve; Gas Analyzer that provides real-time compositional gas analysis; Hazardous Gas Alarm System that detects the presence of hazardous gases; Pit Volume Totalizer, which monitors mud volumes and flow rates during drilling, tripping, and casing operations; and Toolface Control, a directional automation software. In addition, the company provides phone, chat, field, and drilling optimization support, as well as proactive monitoring and office support for data integration. It serves drilling contractors and other oilfield service companies. Pason Systems Inc. was founded in 1978 and is headquartered in Calgary, Canada.