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 $1.1B against $349.2M — 3.1× the size. Sable Offshore Corp. has the higher net margin (0.00% vs −1.78%) and the lower return on invested capital (−18.9% vs 2.38%). Across the 12 metrics below, Nabors Industries Ltd. leads on 9 and Sable Offshore Corp. on 3.

Valuation

Metric NBR SOC Oil & Gas Drilling median
P/E n/m n/m —
P/S 0.32 n/m 1.19
P/B 2.45 0.71 1.24
Price to free cash flow 26.40 n/m 14.65
EV/EBITDA 2.26 n/m 6.73
EV/Sales 0.90 n/m 2.12
Earnings yield (3.08%) (186.35%) (0.70%)
Free cash flow yield 3.79% (197.87%) 3.79%

Profitability

Metric NBR SOC Oil & Gas Drilling median
Gross margin 38.38% — 33.60%
Operating margin 8.40% 0.00% 8.58%
Net margin (1.78%) 0.00% (0.52%)
Free cash flow margin 0.00% 0.00% 6.98%
Return on equity (8.57%) (103.21%) (0.79%)
Return on assets (1.26%) (24.55%) (0.45%)
Return on invested capital 2.38% (18.87%) 2.81%

Growth

Metric NBR SOC Oil & Gas Drilling median
Revenue growth (TTM) 4.42% — 3.33%
EPS growth (last fiscal year) 177.74% 55.47% (46.88%)
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 2.04 2.45 0.59
Current ratio 1.77 0.24 1.76
Net debt to EBITDA 1.10 (2.10) 0.90

Dividend

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

Size

Metric NBR SOC Oil & Gas Drilling median
Market cap 1.08b 349.20m 3.61b

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