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 $3.5B against $2.6B — 1.4× the size. Seadrill Limited grew revenue faster over the last twelve months: 17.1% against 16.6%. Seadrill Limited has the higher net margin (−1.13% vs −3.43%) and the higher return on invested capital (2.81% vs 1.32%). Across the 20 metrics below, Seadrill Limited leads on 12 and Helmerich & Payne, Inc. on 8.

Valuation

Metric HP SDRL Oil & Gas Drilling median
P/E n/m n/m —
P/S 0.87 1.60 1.19
P/B 1.31 0.91 1.24
Price to free cash flow 7.12 70.96 14.65
EV/EBITDA 6.14 6.56 6.73
EV/Sales 1.27 1.75 2.12
Earnings yield (4.04%) (0.70%) (0.70%)
Free cash flow yield 14.04% 1.41% 3.79%

Profitability

Metric HP SDRL Oil & Gas Drilling median
Gross margin 28.82% 0.00% 33.60%
Operating margin 2.25% 8.58% 8.58%
Net margin (3.43%) (1.13%) (0.52%)
Free cash flow margin 12.25% 7.20% 6.98%
Return on equity (4.95%) (0.63%) (0.79%)
Return on assets (2.08%) (0.44%) (0.45%)
Return on invested capital 1.32% 2.81% 2.81%

Growth

Metric HP SDRL Oil & Gas Drilling median
Revenue growth (TTM) 16.57% 17.08% 3.33%
EPS growth (last fiscal year) (148.40%) (119.47%) (46.88%)
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 0.59
Current ratio 1.96 2.18 1.76
Net debt to EBITDA 2.87 0.87 0.90

Dividend

Metric HP SDRL Oil & Gas Drilling median
Dividend yield 2.87% — —
Payout ratio — — —

Size

Metric HP SDRL Oil & Gas Drilling median
Market cap 3.47b 2.56b 3.61b

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