Financial Analysis: Seadrill (OTCMKTS:SDRLF) vs. Valaris (NYSE:VAL)

Seadrill (OTCMKTS:SDRLFGet Rating) and Valaris (NYSE:VALGet Rating) are both oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Profitability

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

Net Margins Return on Equity Return on Assets
Seadrill N/A N/A N/A
Valaris -365.14% -220.37% -74.18%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Seadrill and Valaris, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Seadrill 0 0 0 0 N/A
Valaris 0 0 0 0 N/A

Institutional & Insider Ownership

0.4% of Seadrill shares are owned by institutional investors. Comparatively, 81.8% of Valaris shares are owned by institutional investors. 0.5% of Valaris shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Seadrill and Valaris’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Seadrill $1.06 billion 0.01 -$4.66 billion N/A N/A
Valaris $1.23 billion 3.27 -$4.50 billion N/A N/A

Valaris has higher revenue and earnings than Seadrill.

Summary

Valaris beats Seadrill on 5 of the 8 factors compared between the two stocks.

About Seadrill (Get Rating)

Seadrill Limited provides offshore drilling services to the oil and gas industry worldwide. It operates in three segments: Harsh Environment, Floaters, and Jack-ups Rigs. The company owns and operates drillships, semi-submersible rigs, and jack-up rigs for operations to ultra-deepwater in benign and harsh environments. It offers management services to third parties and related parties. The company operates a fleet of 34 drilling units, including 7 drill ships, 12 semi-submersible rigs, and 15 jack-up rigs. It serves oil super-majors, state-owned national oil companies, and independent oil and gas companies. Seadrill Limited was incorporated in 2005 and is headquartered in Hamilton, Bermuda. On February 10, 2021, Seadrill Limited, along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas.

About Valaris (Get Rating)

Valaris Limited offers offshore contract drilling services to oil and gas industry in Bermuda and internationally. The company owns an offshore drilling rig fleet of 56 rigs, which include 11 drillships, 4 dynamically positioned semisubmersible rigs, 1 moored semisubmersible rig, and 40 jackup rigs. It serves international, government-owned, and independent oil and gas companies in the Gulf of Mexico, the North Sea, the Middle East, West Africa, Australia, and Southeast Asia. The company was incorporated in 2009 and is based in Hamilton, Bermuda.

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