Noble Corporation PLC (NE) vs Valaris Limited (VAL)

Noble Corporation PLC and Valaris Limited are both Oil & Gas Drilling companies. Noble Corporation PLC is the larger, with a market value of $7.0B against $5.7B — 1.2× the size. Valaris Limited trades at the lower P/E: 6.0× against 45.1×. Noble Corporation PLC grew revenue faster over the last twelve months: −11.1% against −13.2%. Valaris Limited has the higher net margin (44.0% vs 4.88%) and the higher return on invested capital (4.00% vs 3.68%). Across the 21 metrics below, Noble Corporation PLC leads on 12 and Valaris Limited on 9.

Valuation

Metric NE VAL Oil & Gas Drilling median
P/E 45.07 6.01 —
P/S 2.23 2.63 1.37
P/B 1.52 1.74 1.35
Price to free cash flow 11.00 38.31 15.47
EV/EBITDA 8.99 21.37 8.26
EV/Sales 2.70 4.06 2.31
Earnings yield 2.22% 16.63% (2.10%)
Free cash flow yield 9.09% 2.61% 3.40%

Profitability

Metric NE VAL Oil & Gas Drilling median
Gross margin 39.78% 24.78% 39.29%
Operating margin 11.37% 11.27% 7.77%
Net margin 4.88% 43.95% 0.00%
Free cash flow margin 20.25% 6.85% 4.46%
Return on equity 3.28% 33.85% (2.78%)
Return on assets 2.01% 18.88% (1.64%)
Return on invested capital 3.68% 4.00% 2.29%

Growth

Metric NE VAL Oil & Gas Drilling median
Revenue growth (TTM) (11.10%) (13.22%) 4.14%
EPS growth (last fiscal year) (54.39%) 172.18% —
Revenue growth, 5-year CAGR 27.79% 10.67% 13.40%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric NE VAL Oil & Gas Drilling median
Debt to equity 0.42 0.34 0.61
Current ratio 1.91 1.55 1.89
Net debt to EBITDA 1.52 0.78 0.90

Dividend

Metric NE VAL Oil & Gas Drilling median
Dividend yield 1.43% — —
Payout ratio 0.00 0.00 0.00

Size

Metric NE VAL Oil & Gas Drilling median
Market cap 6.98b 5.68b 3.98b

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