Analyzing Saipem (OTCMKTS:SAPMF) and Vantage Drilling (OTCMKTS:VTGDF)

Saipem (OTCMKTS:SAPMF) and Vantage Drilling (OTCMKTS:VTGDF) are both energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, earnings, institutional ownership, profitability and dividends.

Risk and Volatility

Saipem has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500. Comparatively, Vantage Drilling has a beta of -0.09, meaning that its stock price is 109% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Saipem and Vantage Drilling, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Saipem	0	1	0	1	3.00
Vantage Drilling	0	0	0	0	0.00

Given Vantage Drilling’s higher probable upside, analysts clearly believe Vantage Drilling is more favorable than Saipem.

Profitability

This table compares Saipem and Vantage Drilling’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Saipem	N/A	N/A	N/A
Vantage Drilling	6.05%	-23.12%	-11.66%

Valuation & Earnings

This table compares Saipem and Vantage Drilling”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Saipem	$15.75 billion	0.33	$331.12 million	N/A	N/A
Vantage Drilling	$239.27 million	N/A	$27.81 million	$0.88	N/A

Saipem has higher revenue and earnings than Vantage Drilling.

Summary

Saipem beats Vantage Drilling on 7 of the 9 factors compared between the two stocks.

About Saipem

Saipem SpA provides energy and infrastructure solutions worldwide. The company operates through Asset Based Services, Offshore Drilling, and Energy Carriers segments. It offers development of subsea fields and pipelaying; installation and lifting of offshore structures; and engineering, implementation, installation, maintenance, modification, and decommissioning activities. The company also engages in onshore engineering and construction, sustainable infrastructures, and robotics and industrialized solutions; and offshore engineering and construction, and wind activities. In addition, the company provides procurement, construction, project management, and engineering integrated services to the oil and gas, civil and marine infrastructure, and environmental markets. Saipem S.p.A. was founded in 1957 and is headquartered in Milan, Italy.

About Vantage Drilling

Vantage Drilling Company is in liquidation. Previously, the company was engaged in the provision of offshore contract drilling services for multinational oil and natural gas companies, government owned oil and natural gas companies, and independent oil and natural gas producers in the United States and internationally. Vantage Drilling Company was founded in 2007 and is based in Houston, Texas.