Seadrill (NYSE:SDRL) vs. Royal Vopak (OTCMKTS:VOPKY) Critical Analysis

Seadrill (NYSE:SDRL) and Royal Vopak (OTCMKTS:VOPKY) are both mid-cap energy companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, valuation, earnings, profitability and analyst recommendations.

Profitability

This table compares Seadrill and Royal Vopak’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Seadrill	5.68%	1.58%	1.12%
Royal Vopak	37.14%	12.16%	5.72%

Analyst Recommendations

This is a summary of recent ratings and target prices for Seadrill and Royal Vopak, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Seadrill	1	1	2	0	2.25
Royal Vopak	0	0	0	0	0.00

Seadrill presently has a consensus target price of $45.25, suggesting a potential upside of 41.81%. Given Seadrill’s stronger consensus rating and higher possible upside, analysts clearly believe Seadrill is more favorable than Royal Vopak.

Institutional & Insider Ownership

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

Earnings and Valuation

This table compares Seadrill and Royal Vopak”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Seadrill	$1.39 billion	1.43	$446.00 million	$1.12	28.49
Royal Vopak	$1.42 billion	4.12	$406.55 million	$4.54	10.98

Seadrill has higher earnings, but lower revenue than Royal Vopak. Royal Vopak is trading at a lower price-to-earnings ratio than Seadrill, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Seadrill has a beta of 1.62, meaning that its share price is 62% more volatile than the S&P 500. Comparatively, Royal Vopak has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500.

Summary

Seadrill beats Royal Vopak on 8 of the 14 factors compared between the two stocks.

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.

About Royal Vopak

Koninklijke Vopak N.V., an independent tank storage company, stores and handles liquid chemicals, gases, and oil products to the energy and manufacturing markets worldwide. The company operates LPG and chemical gas, industrial, chemical, and oil terminals; and owns and operates specialized facilities consisting of tanks, jetties, truck loading stations, and pipelines. It stores and handles chemicals, such as methanol, xylenes, styrene, alpha olefins, and mono-ethylene glycol; gas, including LNG, LPG, ethylene, butadiene, and ammonia; oil products consisting of crude oil, fuel oil, diesel, jet fuel, gasoline, and naphtha; and vegoils and biofuels comprising ethanol, biodiesel, and sustainable aviation fuel. In addition, the company is involved in the development of infrastructure solutions within ports for low-carbon and renewable hydrogen, CO2, long-duration energy storage, and sustainable fuels and feedstocks. Further, it operates 76 terminals in 23 countries with a storage capacity of 35.2 million cubic meters. It serves producers, manufacturers, distributors, governments, traders, and chemical and energy companies. The company was founded in 1616 and is headquartered in Rotterdam, the Netherlands.