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 $5.7B against $1.3B — 4.3× the size. Borr Drilling Limited has negative trailing earnings, so its P/E is not meaningful; Valaris Limited trades at 6.0×. Borr Drilling Limited grew revenue faster over the last twelve months: 2.71% against −13.2%. Valaris Limited has the higher net margin (44.0% vs −24.0%) and the lower return on invested capital (4.00% 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 6.01 —
P/S 1.27 2.63 1.37
P/B 1.35 1.74 1.35
Price to free cash flow n/m 38.31 15.47
EV/EBITDA 9.67 21.37 8.26
EV/Sales 3.63 4.06 2.31
Earnings yield (18.53%) 16.63% (2.10%)
Free cash flow yield (8.35%) 2.61% 3.40%

Profitability

Metric BORR VAL Oil & Gas Drilling median
Gross margin 42.08% 24.78% 39.29%
Operating margin 20.84% 11.27% 7.77%
Net margin (23.98%) 43.95% 0.00%
Free cash flow margin (10.63%) 6.85% 4.46%
Return on equity (24.68%) 33.85% (2.78%)
Return on assets (6.91%) 18.88% (1.64%)
Return on invested capital 4.11% 4.00% 2.29%

Growth

Metric BORR VAL Oil & Gas Drilling median
Revenue growth (TTM) 2.71% (13.22%) 4.14%
EPS growth (last fiscal year) (46.88%) 172.18% —
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 0.34 0.61
Current ratio 2.53 1.55 1.89
Net debt to EBITDA 3.67 0.78 0.90

Dividend

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

Size

Metric BORR VAL Oil & Gas Drilling median
Market cap 1.33b 5.68b 3.98b

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