HP vs PTEN: Which Is the Better Buy in 2026?
Last updated August 2026
Short answer
HP and PTEN are similarly sized, but HP trades noticeably cheaper on forward earnings (24.78x vs 50.81x): the market is paying up for PTEN's profile and pricing HP more conservatively, or for faster growth. Which you prefer comes down to the drivers you believe, and whether adding either over-concentrates what you already own.
HP vs PTEN: the tie-breaker metrics
Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | HP | PTEN | What it tells you |
|---|---|---|---|
| Forward P/E | 24.78 | 50.81 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Beta | 0.60 | 0.63 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 73% of range | 67% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
| Price / book | 1.37 | 1.29 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Reading it: HP is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.
Before you buy: how HP and PTEN affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. HP and PTEN share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined HP and PTEN exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does Helmerich & Payne (HP) do?
Helmerich & Payne, Inc. is one of the largest contract drilling companies in the world, best known for its fleet of advanced land rigs used to drill oil and gas wells in the United States, where it operates more rigs in the Permian Basin than any competitor in the Lower 48. It also runs international land rigs and a smaller set of offshore platform rigs and labor contracts. H&P does not own the oil and gas it helps produce; it earns fees from energy producers for supplying rigs, drilling technology, and crews, so its business is a service to the exploration-and-production industry.
What does Patterson-UTI Energy (PTEN) do?
Patterson-UTI Energy provides drilling and completion services to oil and gas producers, primarily across US onshore basins like the Permian. Its business runs in three segments: Drilling Services (a fleet of high-specification land rigs, averaging roughly 92 US rigs working in early 2026), Completion Services (hydraulic fracturing and related well-completion work, the largest revenue contributor), and Drilling Products (drill bits and downhole tools through its Ulterra and NexTier-era operations, with some Middle East exposure). The company was reshaped by its 2023 mergers with NexTier and Ulterra, which broadened it from a pure rig contractor into a more diversified services firm.
HP vs PTEN: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- HP drivers: US land-drilling leadership; International expansion and the Middle East.
- PTEN drivers: US onshore activity rebound; Diversification beyond drilling rigs.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: The dominant risk is cyclicality: H&P's revenue depends on producers' drilling budgets, which rise and fall with oil and gas prices, so a downturn in energy prices can quickly cut rig demand, utilization, and day rates. For PTEN, pTEN is highly cyclical and its results move with oil and gas prices, producer budgets, and rig and frac-spread counts, none of which it controls.
HP or PTEN: which should you pick?
HP vs PTEN: the full fundamentals
HP. Figures are approximate and tied to the asOf date; verify live numbers before acting. As a cyclical oil-services company, H&P's earnings can swing between profit and loss with drilling activity, so a single quarter says little about the through-cycle picture. Valuation depends heavily on where oil and gas prices and drilling budgets are headed and on how smoothly the international expansion ramps, rather than on a static earnings multiple.
PTEN. As of April 2026, PTEN traded at a low-single-digit EV/EBITDA multiple typical of cyclical oilfield services names, reflecting soft near-term activity and a first-quarter net loss. Full-year 2025 revenue of roughly $4.8 billion was down about 10% year over year, and the company held about $337 million of cash against roughly $1.23 billion of long-term debt. The valuation compresses in downturns and can expand quickly if drilling and completion demand recovers.
Headline figures (approximate, Jul 2026): HP shows business model Contract drilling: supplies land and offshore rigs, technology, and crews to oil and gas producers for fees, fleet Roughly 202 US land rigs, about 130 international land rigs, and a handful of offshore platform rigs as of fiscal Q2 2026, market position Operates more rigs in the Permian Basin than any competitor in the Lower 48, recent results Fiscal Q2 2026 adjusted net loss on soft North American activity and high Saudi rig-reactivation costs; PTEN shows revenue (ttm) ~$4.7B, revenue (fy2025) ~$4.8B, q1 2026 revenue ~$1.1B, q1 2026 net loss ~$25M (~$(0.06)/sh).
The bottom line: HP vs PTEN
HP and PTEN are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined HP and PTEN exposure against your real portfolio. It is not an investment adviser.
Wondering how HP or PTEN fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in Helmerich & Payne with AI
Connect the broker you already use and ask Walnut's AI how HP fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between HP and PTEN?
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Helmerich & Payne, Inc. Patterson-UTI Energy provides drilling and completion services to oil and gas producers, primarily across US onshore basins like the Permian. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is HP or PTEN the better stock?
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Neither is universally better; they suit different views and risk levels. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, HP or PTEN?
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On forward P/E (as of August 2026), HP trades at 24.78x and PTEN at 50.81x, so HP is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both HP and PTEN?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of HP vs PTEN?
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HP: The dominant risk is cyclicality: H&P's revenue depends on producers' drilling budgets, which rise and fall with oil and gas prices, so a downturn in energy prices can quickly cut rig demand, utilization, and day rates. Near-term results have already shown the strain, with an adjusted net loss in fiscal Q2 2026 driven by weaker North American activity and much higher costs to reactivate rigs in Saudi Arabia amid supply-chain disruptions tied to Middle East conflict. That highlights integration and execution risk from the KCA Deutag expansion, plus geopolitical exposure in the region. International operations add currency, contract, and political risk. The energy transition is a longer-term overhang, since reduced fossil-fuel investment over time would shrink the drilling market. Rig fleets are capital-intensive, so idle rigs still carry costs, and the dividend, while long-standing, depends on cash flow that can be volatile through the cycle. PTEN: PTEN is highly cyclical and its results move with oil and gas prices, producer budgets, and rig and frac-spread counts, none of which it controls. A weak first quarter of 2026 produced a net loss, illustrating how quickly softer activity hits the bottom line. Ongoing efficiency gains across the industry mean fewer rigs and crews are needed to drill the same volume, structurally pressuring day counts and utilization. The company carries over $1 billion of long-term debt, so a prolonged downturn would strain cash returns. Consolidation among customers and competitors, commodity volatility, and exposure to a small number of large basins add further concentration risk.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell HP or PTEN; figures are approximate and dated (as of August 2026). Verify current data before investing.