Seadrill (NYSE:SDRL) & New Source Energy Partners (OTCMKTS:NSLPQ) Financial Analysis

New Source Energy Partners (OTCMKTS:NSLPQ) and Seadrill (NYSE:SDRL) are both energy companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, valuation, risk, earnings, dividends, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares New Source Energy Partners and Seadrill”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
New Source Energy Partners	N/A	N/A	N/A	N/A	N/A
Seadrill	$1.39 billion	1.25	$446.00 million	$5.29	5.25

Seadrill has higher revenue and earnings than New Source Energy Partners.

Insider & Institutional Ownership

95.7% of Seadrill shares are owned by institutional investors. 0.2% of Seadrill shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for New Source Energy Partners and Seadrill, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
New Source Energy Partners	0	0	0	0	0.00
Seadrill	0	0	4	0	3.00

Seadrill has a consensus target price of $51.00, indicating a potential upside of 83.69%. Given Seadrill’s stronger consensus rating and higher probable upside, analysts clearly believe Seadrill is more favorable than New Source Energy Partners.

Profitability

This table compares New Source Energy Partners and Seadrill’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
New Source Energy Partners	N/A	N/A	N/A
Seadrill	27.49%	4.68%	3.31%

Summary

Seadrill beats New Source Energy Partners on 9 of the 9 factors compared between the two stocks.

About New Source Energy Partners

New Source Energy Partners L.P. acquires, owns, develops, and produces oil and natural gas properties in the United States. It operates through two segments, Exploration and Production, and Oilfield Services. The company also offers various oilfield services, including wellsite services during the drilling and completion stages of a well, such as blowout prevention, surface valve, and flowback services for horizontal and vertical wells in oil, natural gas, and NGL production regions in North America. New Source Energy GP, LLC operates as a general partner of the company. The company was founded in 2012 and is headquartered in Oklahoma City, Oklahoma. On March 15, 2016, New Source Energy Partners LP, along with its affiliate, filed a voluntary petition for liquidation under Chapter 7 in the US Bankruptcy Court for the District of Delaware.

About Seadrill

Seadrill Ltd. engages in the provision of offshore drilling services to the oil and gas industry. It operates through the following segments: Floaters, Jack-up rigs, and Other. The Floaters segment encompasses drilling, completion, and maintenance of offshore exploration and production wells. the Jack-up Rigs segment includes drilling contracts relate to jack-up rigs for operations in harsh and benign environments in shallow water. The Other segment represents management services to third parties and related parties. The company was founded on May 10, 2005 and is headquartered in Hamilton, Bermuda.