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 $5.4B against $2.6B — 2.1× the size. Seadrill Limited has negative trailing earnings, so its P/E is not meaningful; Valaris Limited trades at 6.8×. Seadrill Limited grew revenue faster over the last twelve months: 17.1% against −11.6%. Valaris Limited has the higher net margin (37.4% vs −1.13%) and the higher return on invested capital (3.13% vs 2.81%). Across the 19 metrics below, Valaris Limited leads on 10 and Seadrill Limited on 9.

Valuation

Metric SDRL VAL Oil & Gas Drilling median
P/E n/m 6.80 —
P/S 1.60 2.54 1.19
P/B 0.91 1.66 1.24
Price to free cash flow 70.96 n/m 14.65
EV/EBITDA 6.56 23.16 6.73
EV/Sales 1.75 3.98 2.12
Earnings yield (0.70%) 14.71% (0.70%)
Free cash flow yield 1.41% (1.89%) 3.79%

Profitability

Metric SDRL VAL Oil & Gas Drilling median
Gross margin 0.00% 24.16% 33.60%
Operating margin 8.58% 8.98% 8.58%
Net margin (1.13%) 37.35% (0.52%)
Free cash flow margin 7.20% (4.80%) 6.98%
Return on equity (0.63%) 27.89% (0.79%)
Return on assets (0.44%) 15.76% (0.45%)
Return on invested capital 2.81% 3.13% 2.81%

Growth

Metric SDRL VAL Oil & Gas Drilling median
Revenue growth (TTM) 17.08% (11.61%) 3.33%
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 0.33 0.59
Current ratio 2.18 1.64 1.76
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 2.56b 5.37b 3.61b

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