Nabors Industries Ltd. (NBR) vs Sable Offshore Corp. (SOC)

Nabors Industries Ltd. and Sable Offshore Corp. are both Oil & Gas Drilling companies. Nabors Industries Ltd. is the larger, with a market value of $1.3B against $761.7M — 1.7× the size. Sable Offshore Corp. has negative trailing earnings, so its P/E is not meaningful; Nabors Industries Ltd. trades at 5.5×. Nabors Industries Ltd. has the higher net margin (6.49% vs 0.00%) and the higher return on invested capital (11.8% vs −18.9%). Across the 13 metrics below, Nabors Industries Ltd. leads on 12 and Sable Offshore Corp. on 1.

Valuation

Metric NBR SOC Oil & Gas Drilling median
P/E 5.51 n/m —
P/S 0.36 n/m 1.37
P/B 1.23 1.51 1.35
Price to free cash flow 29.43 n/m 15.47
EV/EBITDA 2.39 n/m 8.26
EV/Sales 0.98 n/m 2.31
Earnings yield 18.15% (84.79%) (2.10%)
Free cash flow yield 3.40% (93.84%) 3.40%

Profitability

Metric NBR SOC Oil & Gas Drilling median
Gross margin 38.80% — 39.29%
Operating margin 20.78% 0.00% 7.77%
Net margin 6.49% 0.00% 0.00%
Free cash flow margin 1.23% 0.00% 4.46%
Return on equity 26.47% (103.21%) (2.78%)
Return on assets 4.44% (24.55%) (1.64%)
Return on invested capital 11.75% (18.87%) 2.29%

Growth

Metric NBR SOC Oil & Gas Drilling median
Revenue growth (TTM) 5.56% — 4.14%
EPS growth (last fiscal year) 177.74% 55.47% —
Revenue growth, 5-year CAGR 8.51% — 13.40%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric NBR SOC Oil & Gas Drilling median
Debt to equity 2.24 2.45 0.61
Current ratio 1.89 0.24 1.89
Net debt to EBITDA 1.10 (2.10) 0.90

Dividend

Metric NBR SOC Oil & Gas Drilling median
Dividend yield — — —
Payout ratio 0.00 0.00 0.00

Size

Metric NBR SOC Oil & Gas Drilling median
Market cap 1.26b 761.72m 3.98b

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