Seadrill Limited (SDRL) vs Sable Offshore Corp. (SOC)

Seadrill Limited and Sable Offshore Corp. are both Oil & Gas Drilling companies. Seadrill Limited is the larger, with a market value of $2.6B against $349.2M — 7.3× the size. Sable Offshore Corp. has the higher net margin (0.00% vs −1.13%) and the lower return on invested capital (−18.9% vs 2.81%). Across the 13 metrics below, Seadrill Limited leads on 9 and Sable Offshore Corp. on 4.

Valuation

Metric SDRL SOC Oil & Gas Drilling median
P/E n/m n/m —
P/S 1.60 n/m 1.19
P/B 0.91 0.71 1.24
Price to free cash flow 70.96 n/m 14.65
EV/EBITDA 6.56 n/m 6.73
EV/Sales 1.75 n/m 2.12
Earnings yield (0.70%) (186.35%) (0.70%)
Free cash flow yield 1.41% (197.87%) 3.79%

Profitability

Metric SDRL SOC Oil & Gas Drilling median
Gross margin 0.00% — 33.60%
Operating margin 8.58% 0.00% 8.58%
Net margin (1.13%) 0.00% (0.52%)
Free cash flow margin 7.20% 0.00% 6.98%
Return on equity (0.63%) (103.21%) (0.79%)
Return on assets (0.44%) (24.55%) (0.45%)
Return on invested capital 2.81% (18.87%) 2.81%

Growth

Metric SDRL SOC Oil & Gas Drilling median
Revenue growth (TTM) 17.08% — 3.33%
EPS growth (last fiscal year) (119.47%) 55.47% (46.88%)
Revenue growth, 5-year CAGR 6.29% — 13.40%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric SDRL SOC Oil & Gas Drilling median
Debt to equity 0.26 2.45 0.59
Current ratio 2.18 0.24 1.76
Net debt to EBITDA 0.87 (2.10) 0.90

Dividend

Metric SDRL SOC Oil & Gas Drilling median
Dividend yield — — —
Payout ratio — — —

Size

Metric SDRL SOC Oil & Gas Drilling median
Market cap 2.56b 349.20m 3.61b

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