Seadrill (SDRL) vs. Its Competitors Head to Head Review

Seadrill (NASDAQ: SDRL) is one of 19 public companies in the “Oil & Gas Drilling” industry, but how does it weigh in compared to its competitors? We will compare Seadrill to similar companies based on the strength of its analyst recommendations, institutional ownership, dividends, earnings, valuation, profitability and risk.

Analyst Recommendations

This is a summary of recent ratings and price targets for Seadrill and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Seadrill 1 0 0 0 1.00
Seadrill Competitors 496 1551 1257 57 2.26

As a group, “Oil & Gas Drilling” companies have a potential upside of 9.38%. Given Seadrill’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Seadrill has less favorable growth aspects than its competitors.

Profitability

This table compares Seadrill and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Seadrill -27.38% -6.03% -3.02%
Seadrill Competitors -25.08% -7.81% -2.41%

Earnings & Valuation

This table compares Seadrill and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Seadrill N/A N/A -0.33
Seadrill Competitors $1.65 billion -$44.58 million -0.18

Seadrill’s competitors have higher revenue, but lower earnings than Seadrill. Seadrill is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

Seadrill has a beta of 2.94, indicating that its stock price is 194% more volatile than the S&P 500. Comparatively, Seadrill’s competitors have a beta of 2.04, indicating that their average stock price is 104% more volatile than the S&P 500.

Insider & Institutional Ownership

74.5% of shares of all “Oil & Gas Drilling” companies are held by institutional investors. 2.2% of shares of all “Oil & Gas Drilling” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Seadrill competitors beat Seadrill on 9 of the 11 factors compared.

About Seadrill

Seadrill Limited is an offshore drilling contractor providing offshore drilling services to the oil and gas industry. The Company’s primary business is the ownership and operation of drillships, semi-submersible rigs and jack-up rigs for operations in shallow-, mid-, deep-, and ultra deepwater areas, and in benign and harsh environments. The Company’s segments are Floaters and Jack-ups. The Company offers services encompassing drilling, completion and maintenance of offshore exploration and production wells. The Company contracts its drilling units primarily on a dayrate basis to drill wells for its customers. The Company has a fleet of approximately 38 offshore drilling units consisting of over 12 semi-submersible rigs, approximately seven drillships and over 19 jack-up rigs in operation, and contracts for the construction of approximately 13 offshore drilling units. The Company also provides management services to certain unconsolidated companies in which its holds investments.

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