Analyzing Trican Well Service (OTCMKTS:TOLWF) & Pason Systems (OTCMKTS:PSYTF)

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

Dividends

Pason Systems pays an annual dividend of $0.47 per share and has a dividend yield of 4.0%. Trican Well Service pays an annual dividend of $0.30 per share and has a dividend yield of 9.8%. Pason Systems pays out 44.0% of its earnings in the form of a dividend. Trican Well Service pays out -145.4% 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. Trican Well Service is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

46.7% of Pason Systems shares are held by institutional investors. Comparatively, 76.8% of Trican Well Service shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Pason Systems and Trican Well Service’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pason Systems	N/A	N/A	N/A
Trican Well Service	N/A	N/A	N/A

Analyst Ratings

This is a summary of current recommendations and price targets for Pason Systems and Trican Well Service, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pason Systems	0	0	2	0	3.00
Trican Well Service	0	1	0	0	2.00

Pason Systems currently has a consensus target price of $12.38, indicating a potential upside of 5.50%. Trican Well Service has a consensus target price of $2.50, indicating a potential downside of 18.03%. Given Pason Systems’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Pason Systems is more favorable than Trican Well Service.

Valuation & Earnings

This table compares Pason Systems and Trican Well Service’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pason Systems	N/A	N/A	N/A	$1.07	10.99
Trican Well Service	N/A	N/A	N/A	($0.21)	-14.78

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

Summary

Pason Systems beats Trican Well Service on 5 of the 8 factors compared between the two stocks.

About Pason Systems

Pason Systems Inc., an energy services and technology company, provides data management systems for drilling rigs in Canada, the United States, and internationally. The company offers Electronic Drilling Recorder, which monitors and records drilling operations around the rig; DataHub for data and information collected from the rig for on-demand retrieval; DataLink service provides direct connection interfaces for IT systems and analytics tools; Pason Live for monitoring rig operations in real-time using desktop computers or mobile devices; and daily and end-of-well KPI reports provide visual statistics on rig performance. It also provides Drilling intelligence to suggest drilling parameters, detect disfunction, and send event alerts to onsite personnel and remote engineers in real time; and Drilling automation, a reality across rig platforms. In addition, the company offers Pason Gas Analyzer for real-time gas measurement; a robust system of alarms and sensors to monitor ambient gasses in the atmosphere and in the drilling fluids; and Pason Pit Volume Totalizer to track the volumes, gains, and losses of drilling fluids on location. Further, it provides phone and chat support, field support, proactive monitoring, drilling optimization support, and office support for data integration services. The company serves E&P operators, drilling contractors, and other oilfield service companies. Pason Systems Inc. was founded in 1978 and is headquartered in Calgary, Canada.

About Trican Well Service

Trican Well Service Ltd., an equipment services company, provides various specialized products, equipment, services, and technology for use in the drilling, completion, stimulation, and reworking of oil and gas wells primarily in Canada. The company offers cementing solutions, including pre-flushes and spacers, cement plugs, lost circulation, cement design, and laboratory solutions, as well as surface, intermediate, production, liner, horizontal, and remedial/squeeze cementing services. It also provides hydraulic fracturing solutions, such as friction reducers, crosslinked gels, energized foam systems, visco-elastic systems, and high-rate nitrogen for coal bed methane fracturing and gelled hydrocarbons, as well as dissolvable ball sealers and diverting agents; and coiled tubing solutions comprising milling services, including fracturing plugs and ports, stage tool/debris subs, cement milling, and confirmation runs; coiled tubing fracturing; e-coil; in-house engineering; and acidizing and production enhancement services. In addition, the company offers fracture acidizing and production enhancement services that include restore well performance blockages from inorganic scales, emulsions, drilling mud, formation fines, clays, and organic deposits; nitrogen services; and engineering support, reservoir expertise, and laboratory services, as well as engages in the chemical sales. Trican Well Service Ltd. was incorporated in 1979 and is headquartered in Calgary, Canada.