Noble Corporation PLC (NE) vs Seadrill Limited (SDRL)

Noble Corporation PLC and Seadrill Limited are both Oil & Gas Drilling companies. Noble Corporation PLC is the larger, with a market value of $6.4B against $2.6B — 2.5× the size. Seadrill Limited has negative trailing earnings, so its P/E is not meaningful; Noble Corporation PLC trades at 116×. Seadrill Limited grew revenue faster over the last twelve months: 17.1% against −13.1%. Noble Corporation PLC has the higher net margin (1.79% vs −1.13%) and the higher return on invested capital (3.84% vs 2.81%). Across the 20 metrics below, Noble Corporation PLC leads on 12 and Seadrill Limited on 8.

Valuation

Metric NE SDRL Oil & Gas Drilling median
P/E 116.05 n/m —
P/S 2.14 1.60 1.19
P/B 1.50 0.91 1.24
Price to free cash flow 17.95 70.96 14.65
EV/EBITDA 8.63 6.56 6.73
EV/Sales 2.67 1.75 2.12
Earnings yield 0.86% (0.70%) (0.70%)
Free cash flow yield 5.57% 1.41% 3.79%

Profitability

Metric NE SDRL Oil & Gas Drilling median
Gross margin 38.77% 0.00% 33.60%
Operating margin 11.95% 8.58% 8.58%
Net margin 1.79% (1.13%) (0.52%)
Free cash flow margin 11.95% 7.20% 6.98%
Return on equity 1.22% (0.63%) (0.79%)
Return on assets 0.73% (0.44%) (0.45%)
Return on invested capital 3.84% 2.81% 2.81%

Growth

Metric NE SDRL Oil & Gas Drilling median
Revenue growth (TTM) (13.05%) 17.08% 3.33%
EPS growth (last fiscal year) (54.39%) (119.47%) (46.88%)
Revenue growth, 5-year CAGR 27.79% 6.29% 13.40%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric NE SDRL Oil & Gas Drilling median
Debt to equity 0.44 0.26 0.59
Current ratio 1.76 2.18 1.76
Net debt to EBITDA 1.52 0.87 0.90

Dividend

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

Size

Metric NE SDRL Oil & Gas Drilling median
Market cap 6.37b 2.56b 3.61b

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