Nabors Industries (NYSE:NBR) and Seadrill (OTCMKTS:SDRLF) are both small-cap oils/energy companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, dividends, valuation, institutional ownership, profitability, risk and analyst recommendations.
Institutional and Insider Ownership
63.5% of Nabors Industries shares are held by institutional investors. Comparatively, 0.4% of Seadrill shares are held by institutional investors. 4.9% of Nabors Industries shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Nabors Industries and Seadrill’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nabors Industries | $3.05 billion | 0.16 | -$702.89 million | ($66.00) | -0.99 |
| Seadrill | $1.39 billion | 0.02 | -$1.22 billion | N/A | N/A |
Nabors Industries has higher revenue and earnings than Seadrill.
Analyst Ratings
This is a summary of recent recommendations and price targets for Nabors Industries and Seadrill, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nabors Industries | 8 | 7 | 0 | 0 | 1.47 |
| Seadrill | 0 | 0 | 0 | 0 | N/A |
Nabors Industries presently has a consensus target price of $39.94, suggesting a potential downside of 38.74%. Given Nabors Industries’ higher probable upside, research analysts plainly believe Nabors Industries is more favorable than Seadrill.
Profitability
This table compares Nabors Industries and Seadrill’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nabors Industries | -39.93% | -27.82% | -7.34% |
| Seadrill | -181.00% | -97.47% | -11.01% |
Risk and Volatility
Nabors Industries has a beta of 3.77, suggesting that its share price is 277% more volatile than the S&P 500. Comparatively, Seadrill has a beta of 2.47, suggesting that its share price is 147% more volatile than the S&P 500.
Summary
Nabors Industries beats Seadrill on 10 of the 11 factors compared between the two stocks.
About Nabors Industries
Nabors Industries Ltd. provides drilling and drilling-related services for land-based and offshore oil and natural gas wells. It operates through five segments: U.S. Drilling, Canada Drilling, International Drilling, Drilling Solutions, and Rig Technologies. The company offers tubular running, wellbore placement, directional drilling, measurement-while-drilling (MWD), equipment manufacturing, and rig instrumentation services; logging-while-drilling systems and services; and an optimization software. Its drilling tools include Acculine MWD tool for well-site handling; AccuSteer tool for downhole drilling dynamics measurements, and annular and bore pressure applications; and AccuMP MWD tool that provides accurate survey, gamma, and continuous inclination data; In addition, the company offers AccuWave, an electromagnetic MWD system for use in various drilling fluid environments; Navigator collaborative guidance and advisory platform that delivers automated directional drilling information and instructions; ROCKit, a directional steering control system; and REVit, an automated real time stick-slip mitigation system. Further, it manufactures and sells top drives, catwalks, wrenches, draw works, and other drilling related equipment, such as robotic systems and downhole tools; and provides automated tubular and tool handling equipment. As of December 31, 2019, the company marketed approximately 366 rigs for land-based drilling operations in the United States and Canada, as well as in 16 other countries worldwide; and 33 rigs for offshore drilling operations in the United States and internationally. Nabors Industries Ltd. was founded in 1952 and is headquartered in Hamilton, Bermuda.
About Seadrill
Seadrill Limited, an offshore drilling contractor, provides offshore drilling services to the oil and gas industry worldwide. It operates in three segments: Floaters, Jack-up Rigs, and Other. The Floaters segment offers drilling, completion, and maintenance services for offshore exploration and production wells. Its drilling contracts relates to semi-submersible rigs and drill ships for harsh and benign environments in mid, deep, and ultra-deep waters. The Jack-up Rigs segment provides drilling, completion, and maintenance services for offshore exploration and production wells. Its drilling contracts relate to jack-up rigs for operations in harsh and benign environment in shallow waters. The Other segment offers management services to third parties and related parties. The company operates a fleet of 35 drilling units, including 7 drill ships, 12 semi-submersible rigs, and 16 jack-up rigs. It serves oil super-majors, state-owned national oil companies, and independent oil and gas companies. Seadrill Limited was founded in 2005 and is based in Hamilton, Bermuda.