Borr Drilling Limited (BORR) vs Valaris Limited (VAL)

Borr Drilling Limited and Valaris Limited are both Oil & Gas Drilling companies. Valaris Limited is the larger, with a market value of $5.4B against $962.6M — 5.6× the size. Borr Drilling Limited has negative trailing earnings, so its P/E is not meaningful; Valaris Limited trades at 6.8×. Borr Drilling Limited grew revenue faster over the last twelve months: 2.71% against −11.6%. Valaris Limited has the higher net margin (37.4% vs −24.0%) and the lower return on invested capital (3.13% vs 4.11%). Across the 19 metrics below, Borr Drilling Limited leads on 10 and Valaris Limited on 9.

Valuation

Metric BORR VAL Oil & Gas Drilling median
P/E n/m 6.80 —
P/S 0.96 2.54 1.19
P/B 1.01 1.66 1.24
Price to free cash flow n/m n/m 14.65
EV/EBITDA 8.83 23.16 6.73
EV/Sales 3.31 3.98 2.12
Earnings yield (24.61%) 14.71% (0.70%)
Free cash flow yield (11.08%) (1.89%) 3.79%

Profitability

Metric BORR VAL Oil & Gas Drilling median
Gross margin 42.08% 24.16% 33.60%
Operating margin 20.84% 8.98% 8.58%
Net margin (23.98%) 37.35% (0.52%)
Free cash flow margin (10.63%) (4.80%) 6.98%
Return on equity (24.68%) 27.89% (0.79%)
Return on assets (6.91%) 15.76% (0.45%)
Return on invested capital 4.11% 3.13% 2.81%

Growth

Metric BORR VAL Oil & Gas Drilling median
Revenue growth (TTM) 2.71% (11.61%) 3.33%
EPS growth (last fiscal year) (46.88%) 172.18% (46.88%)
Revenue growth, 5-year CAGR 27.12% 10.67% 13.40%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric BORR VAL Oil & Gas Drilling median
Debt to equity 2.58 0.33 0.59
Current ratio 2.53 1.64 1.76
Net debt to EBITDA 3.67 0.78 0.90

Dividend

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

Size

Metric BORR VAL Oil & Gas Drilling median
Market cap 962.56m 5.37b 3.61b

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