Helmerich & Payne, Inc. (HP) vs Nabors Industries Ltd. (NBR)

Helmerich & Payne, Inc. and Nabors Industries Ltd. are both Oil & Gas Drilling companies. Helmerich & Payne, Inc. is the larger, with a market value of $3.8B against $1.2B — 3.2× the size. Helmerich & Payne, Inc. has negative trailing earnings, so its P/E is not meaningful; Nabors Industries Ltd. trades at 5.3×. Helmerich & Payne, Inc. grew revenue faster over the last twelve months: 16.6% against 5.56%. Nabors Industries Ltd. has the higher net margin (6.49% vs −3.43%) and the higher return on invested capital (11.8% vs 1.32%). Across the 20 metrics below, Nabors Industries Ltd. leads on 13 and Helmerich & Payne, Inc. on 7.

Valuation

Metric HP NBR Oil & Gas Drilling median
P/E n/m 5.27 —
P/S 0.94 0.35 1.45
P/B 1.40 1.18 1.40
Price to free cash flow 7.64 28.15 16.15
EV/EBITDA 6.45 2.36 8.53
EV/Sales 1.34 0.96 2.37
Earnings yield (3.77%) 18.98% (2.00%)
Free cash flow yield 13.09% 3.55% 3.55%

Profitability

Metric HP NBR Oil & Gas Drilling median
Gross margin 28.82% 38.80% 39.29%
Operating margin 2.25% 20.78% 7.77%
Net margin (3.43%) 6.49% 0.00%
Free cash flow margin 12.25% 1.23% 4.46%
Return on equity (4.95%) 26.47% (2.78%)
Return on assets (2.08%) 4.44% (1.64%)
Return on invested capital 1.32% 11.75% 2.29%

Growth

Metric HP NBR Oil & Gas Drilling median
Revenue growth (TTM) 16.57% 5.56% 4.14%
EPS growth (last fiscal year) (148.40%) 177.74% (46.88%)
Revenue growth, 5-year CAGR 16.13% 8.51% 13.40%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric HP NBR Oil & Gas Drilling median
Debt to equity 0.70 2.24 0.61
Current ratio 1.96 1.89 1.89
Net debt to EBITDA 2.87 1.10 0.90

Dividend

Metric HP NBR Oil & Gas Drilling median
Dividend yield 2.67% — —
Payout ratio — — —

Size

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

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