Borr Drilling Limited (BORR) vs Seadrill Limited (SDRL)

Borr Drilling Limited and Seadrill Limited are both Oil & Gas Drilling companies. Seadrill Limited is the larger, with a market value of $2.9B against $1.3B — 2.2× the size. Borr Drilling Limited has negative trailing earnings, so its P/E is not meaningful; Seadrill Limited trades at 1,519×. Seadrill Limited grew revenue faster over the last twelve months: 13.1% against 2.71%. Seadrill Limited has the higher net margin (0.07% vs −24.0%) and the lower return on invested capital (2.29% vs 4.11%). Across the 19 metrics below, Seadrill Limited leads on 13 and Borr Drilling Limited on 6.

Valuation

Metric BORR SDRL Oil & Gas Drilling median
P/E n/m 1,519.00 —
P/S 1.27 1.84 1.37
P/B 1.35 0.99 1.35
Price to free cash flow n/m n/m 15.47
EV/EBITDA 9.67 8.26 8.26
EV/Sales 3.63 2.10 2.31
Earnings yield (18.53%) 0.07% (2.10%)
Free cash flow yield (8.35%) (4.64%) 3.40%

Profitability

Metric BORR SDRL Oil & Gas Drilling median
Gross margin 42.08% 49.54% 39.29%
Operating margin 20.84% 7.77% 7.77%
Net margin (23.98%) 0.07% 0.00%
Free cash flow margin (10.63%) (8.55%) 4.46%
Return on equity (24.68%) 0.03% (2.78%)
Return on assets (6.91%) 0.02% (1.64%)
Return on invested capital 4.11% 2.29% 2.29%

Growth

Metric BORR SDRL Oil & Gas Drilling median
Revenue growth (TTM) 2.71% 13.06% 4.14%
EPS growth (last fiscal year) (46.88%) (119.47%) —
Revenue growth, 5-year CAGR 27.12% 6.29% 13.40%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric BORR SDRL Oil & Gas Drilling median
Debt to equity 2.58 0.26 0.61
Current ratio 2.53 2.50 1.89
Net debt to EBITDA 3.67 0.87 0.90

Dividend

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

Size

Metric BORR SDRL Oil & Gas Drilling median
Market cap 1.33b 2.90b 3.98b

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