WallStSmart

Patterson-UTI Energy Inc (PTEN)vsValaris Ltd (VAL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Patterson-UTI Energy Inc generates 97% more annual revenue ($4.66B vs $2.37B). VAL leads profitability with a 41.5% profit margin vs -2.6%. VAL earns a higher WallStSmart Score of 62/100 (C+).

PTEN

Hold

45

out of 100

Grade: D+

Growth: 4.7Profit: 2.0Value: 7.7Quality: 6.0
Piotroski: 4/9Altman Z: 1.48

VAL

Buy

62

out of 100

Grade: C+

Growth: 6.7Profit: 8.0Value: 5.7Quality: 5.8
Piotroski: 3/9Altman Z: 2.19
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PTENUndervalued (+80.4%)

Margin of Safety

+80.4%

Fair Value

$43.72

Current Price

$11.58

$32.14 discount

UndervaluedFair: $43.72Overvalued
VALSignificantly Overvalued (-51.7%)

Margin of Safety

-51.7%

Fair Value

$58.30

Current Price

$92.80

$34.50 premium

UndervaluedFair: $58.30Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PTEN2 strengths · Avg: 9.0/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

PEG RatioValuation
0.738/10

Growing faster than its price suggests

VAL5 strengths · Avg: 9.6/10
P/E RatioValuation
7.4x10/10

Attractively priced relative to earnings

Return on EquityProfitability
36.2%10/10

Every $100 of equity generates 36 in profit

Profit MarginProfitability
41.5%10/10

Keeps 42 of every $100 in revenue as profit

EPS GrowthGrowth
446.6%10/10

Earnings expanding 446.6% YoY

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Areas to Watch

PTEN4 concerns · Avg: 2.0/10
Return on EquityProfitability
-3.6%2/10

ROE of -3.6% — below average capital efficiency

Revenue GrowthGrowth
-12.7%2/10

Revenue declined 12.7%

EPS GrowthGrowth
-97.9%2/10

Earnings declined 97.9%

Free Cash FlowQuality
$-52.77M2/10

Negative free cash flow — burning cash

VAL3 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-8.0%2/10

Revenue declined 8.0%

Free Cash FlowQuality
$-25.90M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : PTEN

The strongest argument for PTEN centers on Price/Book, PEG Ratio. PEG of 0.73 suggests the stock is reasonably priced for its growth.

Bull Case : VAL

The strongest argument for VAL centers on P/E Ratio, Return on Equity, Profit Margin. Profitability is solid with margins at 41.5% and operating margin at 10.5%.

Bear Case : PTEN

The primary concerns for PTEN are Return on Equity, Revenue Growth, EPS Growth.

Bear Case : VAL

The primary concerns for VAL are Piotroski F-Score, Revenue Growth, Free Cash Flow.

Key Dynamics to Monitor

PTEN profiles as a turnaround stock while VAL is a declining play — different risk/reward profiles.

VAL carries more volatility with a beta of 1.04 — expect wider price swings.

VAL is growing revenue faster at -8.0% — sustainability is the question.

VAL generates stronger free cash flow (-26M), providing more financial flexibility.

Bottom Line

VAL scores higher overall (62/100 vs 45/100), backed by strong 41.5% margins. PTEN offers better value entry with a 80.4% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Patterson-UTI Energy Inc

ENERGY · OIL & GAS DRILLING · USA

Patterson-UTI Energy, Inc., provides onshore contract drilling services to oil and natural gas operators in the United States and Canada. The company is headquartered in Houston, Texas.

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Valaris Ltd

ENERGY · OIL & GAS DRILLING · USA

Valaris Limited provides offshore contract drilling services in various water depths for the oil and gas industry globally. The company is headquartered in Hamilton, Bermuda.

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