Borr Drilling Limited (BORR) vs Nabors Industries Ltd. (NBR)

Borr Drilling Limited and Nabors Industries Ltd. are both Oil & Gas Drilling companies. Borr Drilling Limited and Nabors Industries Ltd. are of similar size ($1.3B and $1.3B). Borr Drilling Limited has negative trailing earnings, so its P/E is not meaningful; Nabors Industries Ltd. trades at 5.5×. Nabors Industries Ltd. grew revenue faster over the last twelve months: 5.56% against 2.71%. Nabors Industries Ltd. has the higher net margin (6.49% vs −24.0%) and the higher return on invested capital (11.8% vs 4.11%). Across the 19 metrics below, Nabors Industries Ltd. leads on 15 and Borr Drilling Limited on 4.

Valuation

Metric BORR NBR Oil & Gas Drilling median
P/E n/m 5.51 —
P/S 1.27 0.36 1.37
P/B 1.35 1.23 1.35
Price to free cash flow n/m 29.43 15.47
EV/EBITDA 9.67 2.39 8.26
EV/Sales 3.63 0.98 2.31
Earnings yield (18.53%) 18.15% (2.10%)
Free cash flow yield (8.35%) 3.40% 3.40%

Profitability

Metric BORR NBR Oil & Gas Drilling median
Gross margin 42.08% 38.80% 39.29%
Operating margin 20.84% 20.78% 7.77%
Net margin (23.98%) 6.49% 0.00%
Free cash flow margin (10.63%) 1.23% 4.46%
Return on equity (24.68%) 26.47% (2.78%)
Return on assets (6.91%) 4.44% (1.64%)
Return on invested capital 4.11% 11.75% 2.29%

Growth

Metric BORR NBR Oil & Gas Drilling median
Revenue growth (TTM) 2.71% 5.56% 4.14%
EPS growth (last fiscal year) (46.88%) 177.74% —
Revenue growth, 5-year CAGR 27.12% 8.51% 13.40%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric BORR NBR Oil & Gas Drilling median
Debt to equity 2.58 2.24 0.61
Current ratio 2.53 1.89 1.89
Net debt to EBITDA 3.67 1.10 0.90

Dividend

Metric BORR NBR Oil & Gas Drilling median
Dividend yield 0.16% — —
Payout ratio 0.00 0.00 0.00

Size

Metric BORR NBR Oil & Gas Drilling median
Market cap 1.33b 1.26b 3.98b

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