Nabors Industries Ltd. (NBR) vs Seadrill Limited (SDRL)

Nabors Industries Ltd. and Seadrill Limited are both Oil & Gas Drilling companies. Seadrill Limited is the larger, with a market value of $2.9B against $1.2B — 2.5× the size. Nabors Industries Ltd. trades at the lower P/E: 5.3× against 1,575×. Seadrill Limited grew revenue faster over the last twelve months: 13.1% against 5.56%. Nabors Industries Ltd. has the higher net margin (6.49% vs 0.07%) and the higher return on invested capital (11.8% vs 2.29%). Across the 20 metrics below, Nabors Industries Ltd. leads on 14 and Seadrill Limited on 6.

Valuation

Metric NBR SDRL Oil & Gas Drilling median
P/E 5.27 1,575.00 —
P/S 0.35 1.91 1.45
P/B 1.18 1.02 1.40
Price to free cash flow 28.15 n/m 16.15
EV/EBITDA 2.36 8.53 8.53
EV/Sales 0.96 2.16 2.37
Earnings yield 18.98% 0.06% (2.00%)
Free cash flow yield 3.55% (4.47%) 3.55%

Profitability

Metric NBR SDRL Oil & Gas Drilling median
Gross margin 38.80% 49.54% 39.29%
Operating margin 20.78% 7.77% 7.77%
Net margin 6.49% 0.07% 0.00%
Free cash flow margin 1.23% (8.55%) 4.46%
Return on equity 26.47% 0.03% (2.78%)
Return on assets 4.44% 0.02% (1.64%)
Return on invested capital 11.75% 2.29% 2.29%

Growth

Metric NBR SDRL Oil & Gas Drilling median
Revenue growth (TTM) 5.56% 13.06% 4.14%
EPS growth (last fiscal year) 177.74% (119.47%) (46.88%)
Revenue growth, 5-year CAGR 8.51% 6.29% 13.40%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric NBR SDRL Oil & Gas Drilling median
Debt to equity 2.24 0.26 0.61
Current ratio 1.89 2.50 1.89
Net debt to EBITDA 1.10 0.87 0.90

Dividend

Metric NBR SDRL Oil & Gas Drilling median
Dividend yield — — —
Payout ratio — — —

Size

Metric NBR SDRL Oil & Gas Drilling median
Market cap 1.16b 2.88b 3.77b

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