Head-To-Head Analysis: Nabors Industries (NBR) & Its Competitors

Nabors Industries (NYSE: NBR) is one of 18 publicly-traded companies in the “Oil & Gas Drilling” industry, but how does it weigh in compared to its peers? We will compare Nabors Industries to similar businesses based on the strength of its analyst recommendations, institutional ownership, dividends, profitability, earnings, valuation and risk.

Dividends

Nabors Industries pays an annual dividend of $0.24 per share and has a dividend yield of 3.3%. Nabors Industries pays out -9.4% of its earnings in the form of a dividend. As a group, “Oil & Gas Drilling” companies pay a dividend yield of 4.5% and pay out -116.7% of their earnings in the form of a dividend. Nabors Industries has increased its dividend for 3 consecutive years. Nabors Industries lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Institutional and Insider Ownership

95.7% of Nabors Industries shares are held by institutional investors. Comparatively, 74.9% of shares of all “Oil & Gas Drilling” companies are held by institutional investors. 4.1% of Nabors Industries shares are held by company insiders. Comparatively, 2.2% of shares of all “Oil & Gas Drilling” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Nabors Industries and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Nabors Industries $2.25 billion $535.84 million -2.88
Nabors Industries Competitors $1.42 billion $540.19 million -6.95

Nabors Industries has higher revenue, but lower earnings than its peers. Nabors Industries is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of recent ratings for Nabors Industries and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nabors Industries 0 7 16 0 2.70
Nabors Industries Competitors 492 1505 1227 57 2.26

Nabors Industries currently has a consensus price target of $12.10, indicating a potential upside of 64.63%. As a group, “Oil & Gas Drilling” companies have a potential upside of 20.33%. Given Nabors Industries’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Nabors Industries is more favorable than its peers.

Volatility and Risk

Nabors Industries has a beta of 1.64, meaning that its stock price is 64% more volatile than the S&P 500. Comparatively, Nabors Industries’ peers have a beta of 1.89, meaning that their average stock price is 89% more volatile than the S&P 500.

Profitability

This table compares Nabors Industries and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nabors Industries -32.35% -13.31% -5.32%
Nabors Industries Competitors -18.41% -8.37% -2.62%

Summary

Nabors Industries peers beat Nabors Industries on 8 of the 14 factors compared.

About Nabors Industries

Nabors Industries Ltd. owns and operates a land-based drilling rig fleet. The Company is a provider of offshore platform drilling rigs in the United States and multiple international markets. The Company conducts its Drilling & Rig Services business through four segments: U.S. Drilling, Canada Drilling, International Drilling and Rig Services. The Company provides wellbore placement services, drilling software and performance tools, drilling equipment and various technologies throughout the oil and gas markets. The Company’s Drilling & Rig Services business comprises land-based and offshore drilling rig operations and other rig services, consisting of equipment manufacturing, rig instrumentation and optimization software. The Company is a provider of directional drilling and measurement while drilling (MWD) systems and services. The Company also provides drilling technology and equipment, and well-site services.

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