Nabors Industries Ltd. (NBR) vs Valaris Limited (VAL)

Nabors Industries Ltd. and Valaris Limited are both Oil & Gas Drilling companies. Valaris Limited is the larger, with a market value of $5.7B against $1.3B — 4.5× the size. Nabors Industries Ltd. trades at the lower P/E: 5.5× against 6.0×. Nabors Industries Ltd. grew revenue faster over the last twelve months: 5.56% against −13.2%. Valaris Limited has the higher net margin (44.0% vs 6.49%) and the lower return on invested capital (4.00% vs 11.8%). Across the 21 metrics below, Nabors Industries Ltd. leads on 14 and Valaris Limited on 7.

Valuation

Metric NBR VAL Oil & Gas Drilling median
P/E 5.51 6.01 —
P/S 0.36 2.63 1.37
P/B 1.23 1.74 1.35
Price to free cash flow 29.43 38.31 15.47
EV/EBITDA 2.39 21.37 8.26
EV/Sales 0.98 4.06 2.31
Earnings yield 18.15% 16.63% (2.10%)
Free cash flow yield 3.40% 2.61% 3.40%

Profitability

Metric NBR VAL Oil & Gas Drilling median
Gross margin 38.80% 24.78% 39.29%
Operating margin 20.78% 11.27% 7.77%
Net margin 6.49% 43.95% 0.00%
Free cash flow margin 1.23% 6.85% 4.46%
Return on equity 26.47% 33.85% (2.78%)
Return on assets 4.44% 18.88% (1.64%)
Return on invested capital 11.75% 4.00% 2.29%

Growth

Metric NBR VAL Oil & Gas Drilling median
Revenue growth (TTM) 5.56% (13.22%) 4.14%
EPS growth (last fiscal year) 177.74% 172.18% —
Revenue growth, 5-year CAGR 8.51% 10.67% 13.40%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric NBR VAL Oil & Gas Drilling median
Debt to equity 2.24 0.34 0.61
Current ratio 1.89 1.55 1.89
Net debt to EBITDA 1.10 0.78 0.90

Dividend

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

Size

Metric NBR VAL Oil & Gas Drilling median
Market cap 1.26b 5.68b 3.98b

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