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 is the larger, with a market value of $1.4B against $1.2B — 1.2× the size. Borr Drilling Limited has negative trailing earnings, so its P/E is not meaningful; Nabors Industries Ltd. trades at 5.3×. 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 5.27 —
P/S 1.37 0.35 1.45
P/B 1.45 1.18 1.40
Price to free cash flow n/m 28.15 16.15
EV/EBITDA 9.94 2.36 8.53
EV/Sales 3.73 0.96 2.37
Earnings yield (17.18%) 18.98% (2.00%)
Free cash flow yield (7.74%) 3.55% 3.55%

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% (46.88%)
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 0.00% — —
Payout ratio — — —

Size

Metric BORR NBR Oil & Gas Drilling median
Market cap 1.40b 1.16b 3.77b

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