Analyzing Rowan Companies PLC (RDC) & Its Competitors

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

Risk & Volatility

Rowan Companies PLC has a beta of 1.88, indicating that its share price is 88% more volatile than the S&P 500. Comparatively, Rowan Companies PLC’s rivals have a beta of 1.89, indicating that their average share price is 89% more volatile than the S&P 500.

Valuation and Earnings

This table compares Rowan Companies PLC and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Rowan Companies PLC $1.43 billion $627.20 million -42.84
Rowan Companies PLC Competitors $1.42 billion $540.19 million -10.66

Rowan Companies PLC has higher revenue and earnings than its rivals. Rowan Companies PLC is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Rowan Companies PLC and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rowan Companies PLC -2.62% 0.51% 0.31%
Rowan Companies PLC Competitors -23.79% -8.82% -2.77%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Rowan Companies PLC and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rowan Companies PLC 2 12 6 0 2.20
Rowan Companies PLC Competitors 493 1529 1241 57 2.26

Rowan Companies PLC currently has a consensus target price of $16.11, suggesting a potential upside of 21.28%. As a group, “Oil & Gas Drilling” companies have a potential upside of 23.04%. Given Rowan Companies PLC’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Rowan Companies PLC has less favorable growth aspects than its rivals.

Institutional and Insider Ownership

74.7% of shares of all “Oil & Gas Drilling” companies are owned by institutional investors. 0.8% of Rowan Companies PLC shares are owned by insiders. Comparatively, 2.2% of shares of all “Oil & Gas Drilling” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Rowan Companies PLC rivals beat Rowan Companies PLC on 7 of the 13 factors compared.

Rowan Companies PLC Company Profile

Rowan Companies plc is a provider of offshore contract drilling services to the international oil and gas industry. The Company operates through two segments: deepwater and jack-ups. Its deepwater segment consists of drillship operations. As of December 31, 2016, the Company’s fleet consisted of 29 mobile offshore drilling units, including 25 self-elevating jack-up rigs and four ultra-deepwater drillships. The Company’s fleet operates across the world, including the United States Gulf of Mexico (US GOM), the United Kingdom and Norwegian sectors of the North Sea, the Middle East and Trinidad. As of February 14, 2017, the Company’s drilling fleet consisted of four ultra-deepwater drillships; 19 high-specification cantilever jack-up rigs, and six premium cantilever jack-up rigs. Its jack-ups are capable of drilling wells to maximum depths ranging from 25,000 to 40,000 feet and in maximum water depths ranging from 300 to 550 feet, depending on rig size, location and outfitting.

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