Nabors Industries Ltd. (NBR) vs Noble Corporation PLC (NE)

Nabors Industries Ltd. and Noble Corporation PLC are both Oil & Gas Drilling companies. Noble Corporation PLC is the larger, with a market value of $6.4B against $1.1B — 5.9× the size. Nabors Industries Ltd. has negative trailing earnings, so its P/E is not meaningful; Noble Corporation PLC trades at 116×. Nabors Industries Ltd. grew revenue faster over the last twelve months: 4.42% against −13.1%. Noble Corporation PLC has the higher net margin (1.79% vs −1.78%) and the higher return on invested capital (3.84% vs 2.38%). Across the 20 metrics below, Noble Corporation PLC leads on 13 and Nabors Industries Ltd. on 7.

Valuation

Metric NBR NE Oil & Gas Drilling median
P/E n/m 116.05 —
P/S 0.32 2.14 1.19
P/B 2.45 1.50 1.24
Price to free cash flow 26.40 17.95 14.65
EV/EBITDA 2.26 8.63 6.73
EV/Sales 0.90 2.67 2.12
Earnings yield (3.08%) 0.86% (0.70%)
Free cash flow yield 3.79% 5.57% 3.79%

Profitability

Metric NBR NE Oil & Gas Drilling median
Gross margin 38.38% 38.77% 33.60%
Operating margin 8.40% 11.95% 8.58%
Net margin (1.78%) 1.79% (0.52%)
Free cash flow margin 0.00% 11.95% 6.98%
Return on equity (8.57%) 1.22% (0.79%)
Return on assets (1.26%) 0.73% (0.45%)
Return on invested capital 2.38% 3.84% 2.81%

Growth

Metric NBR NE Oil & Gas Drilling median
Revenue growth (TTM) 4.42% (13.05%) 3.33%
EPS growth (last fiscal year) 177.74% (54.39%) (46.88%)
Revenue growth, 5-year CAGR 8.51% 27.79% 13.40%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric NBR NE Oil & Gas Drilling median
Debt to equity 2.04 0.44 0.59
Current ratio 1.77 1.76 1.76
Net debt to EBITDA 1.10 1.52 0.90

Dividend

Metric NBR NE Oil & Gas Drilling median
Dividend yield — 4.97% —
Payout ratio — 6.12 —

Size

Metric NBR NE Oil & Gas Drilling median
Market cap 1.08b 6.37b 3.61b

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