Seadrill Limited (SDRL) vs Valaris Limited (VAL)

Seadrill Limited and Valaris Limited are both Oil & Gas Drilling companies. Valaris Limited is the larger, with a market value of $5.8B against $2.9B — 2.0× the size. Valaris Limited trades at the lower P/E: 6.3× against 1,575×. Seadrill Limited grew revenue faster over the last twelve months: 13.1% against −13.2%. Valaris Limited has the higher net margin (44.0% vs 0.07%) and the higher return on invested capital (4.00% vs 2.29%). Across the 20 metrics below, Valaris Limited leads on 12 and Seadrill Limited on 8.

Valuation

Metric SDRL VAL Oil & Gas Drilling median
P/E 1,575.00 6.34 —
P/S 1.91 2.77 1.45
P/B 1.02 1.84 1.40
Price to free cash flow n/m 40.42 16.15
EV/EBITDA 8.53 22.13 8.53
EV/Sales 2.16 4.20 2.37
Earnings yield 0.06% 15.77% (2.00%)
Free cash flow yield (4.47%) 2.47% 3.55%

Profitability

Metric SDRL VAL Oil & Gas Drilling median
Gross margin 49.54% 24.78% 39.29%
Operating margin 7.77% 11.27% 7.77%
Net margin 0.07% 43.95% 0.00%
Free cash flow margin (8.55%) 6.85% 4.46%
Return on equity 0.03% 33.85% (2.78%)
Return on assets 0.02% 18.88% (1.64%)
Return on invested capital 2.29% 4.00% 2.29%

Growth

Metric SDRL VAL Oil & Gas Drilling median
Revenue growth (TTM) 13.06% (13.22%) 4.14%
EPS growth (last fiscal year) (119.47%) 172.18% (46.88%)
Revenue growth, 5-year CAGR 6.29% 10.67% 13.40%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric SDRL VAL Oil & Gas Drilling median
Debt to equity 0.26 0.34 0.61
Current ratio 2.50 1.55 1.89
Net debt to EBITDA 0.87 0.78 0.90

Dividend

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

Size

Metric SDRL VAL Oil & Gas Drilling median
Market cap 2.88b 5.82b 3.77b

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