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 $5.7B against $761.7M — 7.5× the size. Sable Offshore Corp. has negative trailing earnings, so its P/E is not meaningful; Valaris Limited trades at 6.0×. Valaris Limited has the higher net margin (44.0% vs 0.00%) and the higher return on invested capital (4.00% vs −18.9%). Across the 13 metrics below, Valaris Limited leads on 11 and Sable Offshore Corp. on 2.

Valuation

Metric SOC VAL Oil & Gas Drilling median
P/E n/m 6.01 —
P/S n/m 2.63 1.37
P/B 1.51 1.74 1.35
Price to free cash flow n/m 38.31 15.47
EV/EBITDA n/m 21.37 8.26
EV/Sales n/m 4.06 2.31
Earnings yield (84.79%) 16.63% (2.10%)
Free cash flow yield (93.84%) 2.61% 3.40%

Profitability

Metric SOC VAL Oil & Gas Drilling median
Gross margin — 24.78% 39.29%
Operating margin 0.00% 11.27% 7.77%
Net margin 0.00% 43.95% 0.00%
Free cash flow margin 0.00% 6.85% 4.46%
Return on equity (103.21%) 33.85% (2.78%)
Return on assets (24.55%) 18.88% (1.64%)
Return on invested capital (18.87%) 4.00% 2.29%

Growth

Metric SOC VAL Oil & Gas Drilling median
Revenue growth (TTM) — (13.22%) 4.14%
EPS growth (last fiscal year) 55.47% 172.18% —
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 0.34 0.61
Current ratio 0.24 1.55 1.89
Net debt to EBITDA (2.10) 0.78 0.90

Dividend

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

Size

Metric SOC VAL Oil & Gas Drilling median
Market cap 761.72m 5.68b 3.98b

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