Seadrill Partners (NYSE: SDLP) and Nabors Industries (NYSE:NBR) are both oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.
This table compares Seadrill Partners and Nabors Industries’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares Seadrill Partners and Nabors Industries’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Seadrill Partners||$1.13 billion||0.21||$141.20 million||N/A||N/A|
|Nabors Industries||$2.57 billion||0.97||-$546.81 million||($1.63)||-4.29|
Seadrill Partners has higher earnings, but lower revenue than Nabors Industries.
Insider & Institutional Ownership
14.6% of Seadrill Partners shares are owned by institutional investors. Comparatively, 96.3% of Nabors Industries shares are owned by institutional investors. 4.2% of Nabors Industries shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Seadrill Partners pays an annual dividend of $0.40 per share and has a dividend yield of 12.5%. Nabors Industries pays an annual dividend of $0.24 per share and has a dividend yield of 3.4%. Nabors Industries pays out -14.7% of its earnings in the form of a dividend. Nabors Industries has raised its dividend for 4 consecutive years.
This is a breakdown of current ratings and target prices for Seadrill Partners and Nabors Industries, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Nabors Industries has a consensus price target of $9.73, suggesting a potential upside of 39.13%. Given Nabors Industries’ higher possible upside, analysts plainly believe Nabors Industries is more favorable than Seadrill Partners.
Volatility & Risk
Seadrill Partners has a beta of 1.96, indicating that its share price is 96% more volatile than the S&P 500. Comparatively, Nabors Industries has a beta of 1.58, indicating that its share price is 58% more volatile than the S&P 500.
Nabors Industries beats Seadrill Partners on 8 of the 15 factors compared between the two stocks.
Seadrill Partners Company Profile
Seadrill Partners LLC owns, operates, and acquires offshore drilling units. The company primarily serves various oil and gas companies. As of April 20, 2017, its fleet consisted of four semi-submersible drilling rigs, four drillships, and three tender rigs. The company was founded in 2012 and is headquartered in London, the United Kingdom.
Nabors Industries Company Profile
Nabors Industries Ltd. provides drilling and drilling-related services and technologies for land-based and offshore oil and natural gas wells. It operates through five segments: U.S., Canada, International, Drilling Solutions, and Rig Technologies. The company offers equipment manufacturing, rig instrumentation, optimization software, and directional drilling services. It also provides patented steering systems and rig instrumentation software systems, including ROCKIT directional drilling system that offers data collection services to oil and gas exploration and service companies; REVit control system, a stick slip mitigation system; RIGWATCH software, which monitors a rig's real-time performance and provides daily reporting for drilling operations; and DrillSmart software that allows the drilling system to adapt operating parameters and drilling conditions. In addition, the company offers measurement while drilling (MWD) systems and services, such as AccuMP mud pulse MWD system, which is designed to address the various MWD reliability issues; AccuWave collar mounted Electromagnetic MWD system that addresses the needs of the land market through the technology and design techniques; and Nabors' AccuSteer Measurement While Drilling (M/LWD) Suite, which is a premier dynamics evaluation MWD system for performance drilling with integrated advanced geosteering measurements. 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, 2017, the company marketed approximately 407 rigs for land-based drilling operations in the United States and Canada, as well as in 20 other countries worldwide; and 38 rigs for offshore drilling operations in the United States and internationally. Nabors Industries Ltd. was founded in 1952 and is headquartered in Hamilton, Bermuda.
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