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 $2.6B against $962.6M — 2.7× the size. Seadrill Limited grew revenue faster over the last twelve months: 17.1% against 2.71%. Seadrill Limited has the higher net margin (−1.13% vs −24.0%) and the lower return on invested capital (2.81% vs 4.11%). Across the 19 metrics below, Seadrill Limited leads on 12 and Borr Drilling Limited on 7.

Valuation

Metric BORR SDRL Oil & Gas Drilling median
P/E n/m n/m —
P/S 0.96 1.60 1.19
P/B 1.01 0.91 1.24
Price to free cash flow n/m 70.96 14.65
EV/EBITDA 8.83 6.56 6.73
EV/Sales 3.31 1.75 2.12
Earnings yield (24.61%) (0.70%) (0.70%)
Free cash flow yield (11.08%) 1.41% 3.79%

Profitability

Metric BORR SDRL Oil & Gas Drilling median
Gross margin 42.08% 0.00% 33.60%
Operating margin 20.84% 8.58% 8.58%
Net margin (23.98%) (1.13%) (0.52%)
Free cash flow margin (10.63%) 7.20% 6.98%
Return on equity (24.68%) (0.63%) (0.79%)
Return on assets (6.91%) (0.44%) (0.45%)
Return on invested capital 4.11% 2.81% 2.81%

Growth

Metric BORR SDRL Oil & Gas Drilling median
Revenue growth (TTM) 2.71% 17.08% 3.33%
EPS growth (last fiscal year) (46.88%) (119.47%) (46.88%)
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 0.59
Current ratio 2.53 2.18 1.76
Net debt to EBITDA 3.67 0.87 0.90

Dividend

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

Size

Metric BORR SDRL Oil & Gas Drilling median
Market cap 962.56m 2.56b 3.61b

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