Critical Contrast: Borr Drilling (NYSE:BORR) versus Saipem (OTCMKTS:SAPMF)

Borr Drilling (NYSE:BORR) and Saipem (OTCMKTS:SAPMF) are both energy companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, profitability, risk, institutional ownership and earnings.

Risk & Volatility

Borr Drilling has a beta of 1.99, indicating that its stock price is 99% more volatile than the S&P 500. Comparatively, Saipem has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500.

Valuation & Earnings

This table compares Borr Drilling and Saipem”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Borr Drilling	$1.01 billion	0.72	$82.10 million	$0.21	14.76
Saipem	$15.75 billion	0.35	$331.12 million	N/A	N/A

Saipem has higher revenue and earnings than Borr Drilling.

Insider and Institutional Ownership

83.1% of Borr Drilling shares are held by institutional investors. 7.9% of Borr Drilling shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Borr Drilling and Saipem, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Borr Drilling	0	3	0	0	2.00
Saipem	0	1	0	1	3.00

Borr Drilling currently has a consensus target price of $2.83, suggesting a potential downside of 8.87%. Given Borr Drilling’s higher probable upside, equities research analysts plainly believe Borr Drilling is more favorable than Saipem.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Borr Drilling	5.48%	5.46%	1.60%
Saipem	N/A	N/A	N/A

Summary

Borr Drilling beats Saipem on 8 of the 12 factors compared between the two stocks.

About Borr Drilling

Borr Drilling Limited operates as an offshore shallow-water drilling contractor to the oil and gas industry worldwide. The company owns, contracts, and operates jack-up drilling rigs for operations in shallow-water areas, including the provision of related equipment and work crews to conduct oil and gas drilling and workover operations for exploration and production. It serves oil and gas exploration and production companies, such as integrated oil companies, state-owned national oil companies, and independent oil and gas companies. The company was formerly known as Magni Drilling Limited and changed its name to Borr Drilling Limited in December 2016. Borr Drilling Limited was incorporated in 2016 and is based in Hamilton, Bermuda.

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.