Sable Offshore Corp. (SOC) vs Valaris Limited (VAL)

Sable Offshore Corp. and Valaris Limited are both Oil & Gas Drilling companies. Valaris Limited is the larger, with a market value of $5.4B against $349.2M — 15.4× the size. Sable Offshore Corp. has negative trailing earnings, so its P/E is not meaningful; Valaris Limited trades at 6.8×. Valaris Limited has the higher net margin (37.4% vs 0.00%) and the higher return on invested capital (3.13% vs −18.9%). Across the 13 metrics below, Valaris Limited leads on 10 and Sable Offshore Corp. on 3.

Valuation

Metric SOC VAL Oil & Gas Drilling median
P/E n/m 6.80 —
P/S n/m 2.54 1.19
P/B 0.71 1.66 1.24
Price to free cash flow n/m n/m 14.65
EV/EBITDA n/m 23.16 6.73
EV/Sales n/m 3.98 2.12
Earnings yield (186.35%) 14.71% (0.70%)
Free cash flow yield (197.87%) (1.89%) 3.79%

Profitability

Metric SOC VAL Oil & Gas Drilling median
Gross margin — 24.16% 33.60%
Operating margin 0.00% 8.98% 8.58%
Net margin 0.00% 37.35% (0.52%)
Free cash flow margin 0.00% (4.80%) 6.98%
Return on equity (103.21%) 27.89% (0.79%)
Return on assets (24.55%) 15.76% (0.45%)
Return on invested capital (18.87%) 3.13% 2.81%

Growth

Metric SOC VAL Oil & Gas Drilling median
Revenue growth (TTM) — (11.61%) 3.33%
EPS growth (last fiscal year) 55.47% 172.18% (46.88%)
Revenue growth, 5-year CAGR — 10.67% 13.40%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric SOC VAL Oil & Gas Drilling median
Debt to equity 2.45 0.33 0.59
Current ratio 0.24 1.64 1.76
Net debt to EBITDA (2.10) 0.78 0.90

Dividend

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

Size

Metric SOC VAL Oil & Gas Drilling median
Market cap 349.20m 5.37b 3.61b

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