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 $2.9B against $761.7M — 3.8× the size. Sable Offshore Corp. has negative trailing earnings, so its P/E is not meaningful; Seadrill Limited trades at 1,519×. Seadrill Limited has the higher net margin (0.07% vs 0.00%) and the higher return on invested capital (2.29% vs −18.9%). Across the 13 metrics below, Seadrill Limited leads on 10 and Sable Offshore Corp. on 3.

Valuation

Metric SDRL SOC Oil & Gas Drilling median
P/E 1,519.00 n/m —
P/S 1.84 n/m 1.37
P/B 0.99 1.51 1.35
Price to free cash flow n/m n/m 15.47
EV/EBITDA 8.26 n/m 8.26
EV/Sales 2.10 n/m 2.31
Earnings yield 0.07% (84.79%) (2.10%)
Free cash flow yield (4.64%) (93.84%) 3.40%

Profitability

Metric SDRL SOC Oil & Gas Drilling median
Gross margin 49.54% — 39.29%
Operating margin 7.77% 0.00% 7.77%
Net margin 0.07% 0.00% 0.00%
Free cash flow margin (8.55%) 0.00% 4.46%
Return on equity 0.03% (103.21%) (2.78%)
Return on assets 0.02% (24.55%) (1.64%)
Return on invested capital 2.29% (18.87%) 2.29%

Growth

Metric SDRL SOC Oil & Gas Drilling median
Revenue growth (TTM) 13.06% — 4.14%
EPS growth (last fiscal year) (119.47%) 55.47% —
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 0.61
Current ratio 2.50 0.24 1.89
Net debt to EBITDA 0.87 (2.10) 0.90

Dividend

Metric SDRL SOC Oil & Gas Drilling median
Dividend yield — — —
Payout ratio — 0.00 0.00

Size

Metric SDRL SOC Oil & Gas Drilling median
Market cap 2.90b 761.72m 3.98b

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