Patterson-UTI Energy, Inc. (PTEN) vs Seadrill Limited (SDRL)

Patterson-UTI Energy, Inc. and Seadrill Limited are both Oil & Gas Drilling companies. Patterson-UTI Energy, Inc. is the larger, with a market value of $4.2B against $2.9B — 1.5× the size. Patterson-UTI Energy, Inc. has negative trailing earnings, so its P/E is not meaningful; Seadrill Limited trades at 1,519×. Seadrill Limited grew revenue faster over the last twelve months: 13.1% against −6.92%. Seadrill Limited has the higher net margin (0.07% vs −1.92%) and the higher return on invested capital (2.29% vs −0.75%). Across the 19 metrics below, Seadrill Limited leads on 12 and Patterson-UTI Energy, Inc. on 7.

Valuation

Metric PTEN SDRL Oil & Gas Drilling median
P/E n/m 1,519.00 —
P/S 0.89 1.84 1.37
P/B 1.34 0.99 1.35
Price to free cash flow 19.94 n/m 15.47
EV/EBITDA 6.23 8.26 8.26
EV/Sales 1.11 2.10 2.31
Earnings yield (2.10%) 0.07% (2.10%)
Free cash flow yield 5.01% (4.64%) 3.40%

Profitability

Metric PTEN SDRL Oil & Gas Drilling median
Gross margin 23.76% 49.54% 39.29%
Operating margin (1.06%) 7.77% 7.77%
Net margin (1.92%) 0.07% 0.00%
Free cash flow margin 4.46% (8.55%) 4.46%
Return on equity (2.78%) 0.03% (2.78%)
Return on assets (1.64%) 0.02% (1.64%)
Return on invested capital (0.75%) 2.29% 2.29%

Growth

Metric PTEN SDRL Oil & Gas Drilling median
Revenue growth (TTM) (6.92%) 13.06% 4.14%
EPS growth (last fiscal year) 90.16% (119.47%) —
Revenue growth, 5-year CAGR 33.83% 6.29% 13.40%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric PTEN SDRL Oil & Gas Drilling median
Debt to equity 0.40 0.26 0.61
Current ratio 1.75 2.50 1.89
Net debt to EBITDA 0.90 0.87 0.90

Dividend

Metric PTEN SDRL Oil & Gas Drilling median
Dividend yield 3.05% — —
Payout ratio 0.18 — 0.00

Size

Metric PTEN SDRL Oil & Gas Drilling median
Market cap 4.21b 2.90b 3.98b

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