Pacific Drilling (NYSE:PACD) and Seadrill (NYSE:SDRL) are both small-cap oils/energy companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, profitability, institutional ownership, valuation and risk.
Institutional & Insider Ownership
86.2% of Pacific Drilling shares are held by institutional investors. Comparatively, 9.5% of Seadrill shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Pacific Drilling has a beta of 2.2, indicating that its share price is 120% more volatile than the S&P 500. Comparatively, Seadrill has a beta of 2.25, indicating that its share price is 125% more volatile than the S&P 500.
Valuation and Earnings
This table compares Pacific Drilling and Seadrill’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Pacific Drilling||$264.87 million||1.77||-$2.18 billion||N/A||N/A|
|Seadrill||$1.25 billion||1.41||-$4.48 billion||N/A||N/A|
Pacific Drilling has higher earnings, but lower revenue than Seadrill.
This is a breakdown of current recommendations for Pacific Drilling and Seadrill, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Seadrill has a consensus target price of $304.00, indicating a potential upside of 8,585.71%. Given Seadrill’s higher probable upside, analysts clearly believe Seadrill is more favorable than Pacific Drilling.
This table compares Pacific Drilling and Seadrill’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Seadrill beats Pacific Drilling on 6 of the 11 factors compared between the two stocks.
About Pacific Drilling
Pacific Drilling S.A., together with its subsidiaries, operates as an offshore drilling contractor. It provides offshore drilling services to the oil and natural gas industry. The company contracts its fleet of rigs to drill wells for its customers. It has a fleet of seven drillships. The company was founded in 2006 and is headquartered in Houston, Texas.
Seadrill Ltd. is an offshore drilling contractor providing offshore drilling services to the oil and gas industry. Its primary business is the ownership and operation of drillships, semi-submersible rigs, jack-up rigs, tender rigs for operations in shallow, mid, deep, and ultra deep-water areas, and in benign and harsh environments. The company operates through the following segments: Floaters, Jack-up Rigs, and Other. The Floaters segment offer services encompassing drilling, completion, and maintenance of offshore exploration and production wells. The Jack-up Rigs segment offers drilling services, completion and maintenance of offshore exploration and production wells. The Other segment engages in management services to third parties and related parties. Seadrill was founded on May 10, 2005 and is headquartered in Hamilton, Bermuda.
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