Analyzing Noble (NE) and The Competition

Noble (NYSE: NE) is one of 25 publicly-traded companies in the “Drilling oil & gas wells” industry, but how does it contrast to its rivals? We will compare Noble to similar businesses based on the strength of its risk, profitability, valuation, earnings, institutional ownership, analyst recommendations and dividends.

Volatility and Risk

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Noble has a beta of 2.2, indicating that its share price is 120% more volatile than the S&P 500. Comparatively, Noble’s rivals have a beta of 1.82, indicating that their average share price is 82% more volatile than the S&P 500.

Insider and Institutional Ownership

87.7% of Noble shares are owned by institutional investors. Comparatively, 67.1% of shares of all “Drilling oil & gas wells” companies are owned by institutional investors. 1.0% of Noble shares are owned by insiders. Comparatively, 4.0% of shares of all “Drilling oil & gas wells” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Noble and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Noble 5 10 3 0 1.89
Noble Competitors 630 1845 1570 53 2.26

Noble currently has a consensus target price of $4.64, indicating a potential upside of 8.10%. As a group, “Drilling oil & gas wells” companies have a potential upside of 2.08%. Given Noble’s higher possible upside, equities analysts plainly believe Noble is more favorable than its rivals.

Valuation & Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Noble $1.24 billion -$516.51 million -3.76
Noble Competitors $1.22 billion -$264.88 million -27.27

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

Profitability

This table compares Noble and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Noble -41.76% -4.61% -2.55%
Noble Competitors -27.73% -14.23% -4.01%

Summary

Noble beats its rivals on 7 of the 13 factors compared.

Noble Company Profile

Noble Corporation plc operates as an offshore drilling contractor for the oil and gas industry worldwide. It provides contract drilling services using mobile offshore drilling units. As of December 31, 2017, the company operated a fleet of 8 drill ships, 6 semisubmersibles, and 14 jack ups. Noble Corporation plc was founded in 1921 and is headquartered in London, the United Kingdom.

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