Patterson UTI (PTEN) is a land-based specialty drilling services company operating in the southwest, Gulf of Mexico and Canada. The company's stock sells at significantly lower price-earnings multiple compared with larger drilling peers such as Baker Hughes (BHI), with a P/E of 11; Helmerich & Payne (HP), with a P/E of 10; and Nabors (NBR), with a P/E of 14. Patterson also operates at a higher gross margin than those same competitors, with the exception of Helmerich & Payne.
When drilling picks up, and it will, Patterson-UTI is a compelling value investment.
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