Helmerich & Payne, Inc. (HP) vs Seadrill Limited (SDRL)

Helmerich & Payne, Inc. and Seadrill Limited are both Oil & Gas Drilling companies. Helmerich & Payne, Inc. is the larger, with a market value of $4.0B against $2.9B — 1.4× the size. Helmerich & Payne, Inc. has negative trailing earnings, so its P/E is not meaningful; Seadrill Limited trades at 1,519×. Helmerich & Payne, Inc. grew revenue faster over the last twelve months: 16.6% against 13.1%. Seadrill Limited has the higher net margin (0.07% vs −3.43%) and the higher return on invested capital (2.29% vs 1.32%). Across the 19 metrics below, Seadrill Limited leads on 12 and Helmerich & Payne, Inc. on 7.

Valuation

Metric HP SDRL Oil & Gas Drilling median
P/E n/m 1,519.00 —
P/S 0.97 1.84 1.37
P/B 1.45 0.99 1.35
Price to free cash flow 7.91 n/m 15.47
EV/EBITDA 6.61 8.26 8.26
EV/Sales 1.37 2.10 2.31
Earnings yield (3.64%) 0.07% (2.10%)
Free cash flow yield 12.65% (4.64%) 3.40%

Profitability

Metric HP SDRL Oil & Gas Drilling median
Gross margin 28.82% 49.54% 39.29%
Operating margin 2.25% 7.77% 7.77%
Net margin (3.43%) 0.07% 0.00%
Free cash flow margin 12.25% (8.55%) 4.46%
Return on equity (4.95%) 0.03% (2.78%)
Return on assets (2.08%) 0.02% (1.64%)
Return on invested capital 1.32% 2.29% 2.29%

Growth

Metric HP SDRL Oil & Gas Drilling median
Revenue growth (TTM) 16.57% 13.06% 4.14%
EPS growth (last fiscal year) (148.40%) (119.47%) —
Revenue growth, 5-year CAGR 16.13% 6.29% 13.40%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric HP SDRL Oil & Gas Drilling median
Debt to equity 0.70 0.26 0.61
Current ratio 1.96 2.50 1.89
Net debt to EBITDA 2.87 0.87 0.90

Dividend

Metric HP SDRL Oil & Gas Drilling median
Dividend yield 3.73% — —
Payout ratio 0.45 — 0.00

Size

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

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