Bristow Group (BRS) vs. McDermott International (MDR) Head to Head Review

McDermott International (NYSE: MDR) and Bristow Group (NYSE:BRS) are both energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, profitability, analyst recommendations, earnings, dividends and risk.

Dividends

Bristow Group pays an annual dividend of $0.14 per share and has a dividend yield of 0.9%. McDermott International does not pay a dividend. Bristow Group pays out -2.9% of its earnings in the form of a dividend.

Volatility & Risk

McDermott International has a beta of 1.58, meaning that its stock price is 58% more volatile than the S&P 500. Comparatively, Bristow Group has a beta of 3.15, meaning that its stock price is 215% more volatile than the S&P 500.

Institutional and Insider Ownership

85.7% of McDermott International shares are owned by institutional investors. 1.3% of McDermott International shares are owned by insiders. Comparatively, 10.0% of Bristow Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares McDermott International and Bristow Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
McDermott International 5.25% 9.56% 4.80%
Bristow Group -12.13% -7.91% -3.25%

Analyst Recommendations

This is a summary of current ratings and price targets for McDermott International and Bristow Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
McDermott International 1 3 4 0 2.38
Bristow Group 0 3 0 0 2.00

McDermott International presently has a consensus target price of $7.89, indicating a potential upside of 2.70%. Bristow Group has a consensus target price of $12.33, indicating a potential downside of 20.94%. Given McDermott International’s stronger consensus rating and higher probable upside, equities research analysts plainly believe McDermott International is more favorable than Bristow Group.

Valuation & Earnings

This table compares McDermott International and Bristow Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
McDermott International $2.64 billion 0.83 $34.11 million $0.53 14.49
Bristow Group $1.40 billion 0.39 -$170.53 million ($4.91) -3.18

McDermott International has higher revenue and earnings than Bristow Group. Bristow Group is trading at a lower price-to-earnings ratio than McDermott International, indicating that it is currently the more affordable of the two stocks.

Summary

McDermott International beats Bristow Group on 12 of the 16 factors compared between the two stocks.

McDermott International Company Profile

McDermott International, Inc. is a provider of integrated engineering, procurement, construction and installation (EPCI), front-end engineering and design (FEED) and module fabrication services for upstream field developments across the world. The Company delivers fixed and floating production facilities, pipeline installations and subsea systems from concept to commissioning for offshore and subsea oil and gas projects. It operates through three segments: the Americas, Europe and Africa (AEA), the Middle East (MEA) and Asia (ASA). As of December 31, 2016, operated in approximately 20 countries across the Americas, Europe, Africa, the Middle East, Asia and Australia, its integrated resources include a diversified fleet of marine vessels, fabrication facilities and engineering offices. It support its activities with project management and procurement services, while utilizing its fully integrated capabilities in both shallow water and deepwater construction.

Bristow Group Company Profile

Bristow Group Inc. is an industrial aviation services provider and helicopter service provider to the offshore energy industry. The Industrial Aviation Services segment’s operations are conducted primarily through four regions: Europe Caspian, Africa, Americas and Asia Pacific. The Europe Caspian region consists of all its operations and affiliates in Europe and Central Asia, including Norway, the United Kingdom and Turkmenistan. The Africa region consists of all its operations and affiliates on the African continent, including Nigeria, Tanzania and Egypt. The Americas region consists of all its operations and affiliates in North America and South America, including Brazil, Canada, Trinidad and the United States Gulf of Mexico. The Asia Pacific region consists of all its operations and affiliates in Australia and Southeast Asia, including Malaysia and Sakhalin. Additionally, it operates a training unit, Bristow Academy.

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