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 $6.4B against $5.4B — 1.2× the size. Valaris Limited trades at the lower P/E: 6.8× against 116×. Valaris Limited grew revenue faster over the last twelve months: −11.6% against −13.1%. Valaris Limited has the higher net margin (37.4% vs 1.79%) and the lower return on invested capital (3.13% vs 3.84%). Across the 20 metrics below, Noble Corporation PLC leads on 11 and Valaris Limited on 9.

Valuation

Metric NE VAL Oil & Gas Drilling median
P/E 116.05 6.80 —
P/S 2.14 2.54 1.19
P/B 1.50 1.66 1.24
Price to free cash flow 17.95 n/m 14.65
EV/EBITDA 8.63 23.16 6.73
EV/Sales 2.67 3.98 2.12
Earnings yield 0.86% 14.71% (0.70%)
Free cash flow yield 5.57% (1.89%) 3.79%

Profitability

Metric NE VAL Oil & Gas Drilling median
Gross margin 38.77% 24.16% 33.60%
Operating margin 11.95% 8.98% 8.58%
Net margin 1.79% 37.35% (0.52%)
Free cash flow margin 11.95% (4.80%) 6.98%
Return on equity 1.22% 27.89% (0.79%)
Return on assets 0.73% 15.76% (0.45%)
Return on invested capital 3.84% 3.13% 2.81%

Growth

Metric NE VAL Oil & Gas Drilling median
Revenue growth (TTM) (13.05%) (11.61%) 3.33%
EPS growth (last fiscal year) (54.39%) 172.18% (46.88%)
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 0.44 0.33 0.59
Current ratio 1.76 1.64 1.76
Net debt to EBITDA 1.52 0.78 0.90

Dividend

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

Size

Metric NE VAL Oil & Gas Drilling median
Market cap 6.37b 5.37b 3.61b

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