Critical Comparison: Seadrill (NYSE:SDRL) & Sauer Energy (OTCMKTS:SENY)

Seadrill (NYSE:SDRL) and Sauer Energy (OTCMKTS:SENY) are both small-cap energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, profitability, risk, institutional ownership and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and price targets for Seadrill and Sauer Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Seadrill	0	0	4	0	3.00
Sauer Energy	0	0	0	0	0.00

Seadrill presently has a consensus target price of $50.75, indicating a potential upside of 111.41%. Given Seadrill’s stronger consensus rating and higher probable upside, analysts clearly believe Seadrill is more favorable than Sauer Energy.

Valuation & Earnings

This table compares Seadrill and Sauer Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Seadrill	$1.35 billion	1.10	$300.00 million	$5.29	4.54
Sauer Energy	N/A	N/A	N/A	N/A	N/A

Seadrill has higher revenue and earnings than Sauer Energy.

Institutional and Insider Ownership

95.7% of Seadrill shares are owned by institutional investors. 0.2% of Seadrill shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Seadrill and Sauer Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Seadrill	27.79%	7.24%	5.12%
Sauer Energy	N/A	N/A	N/A

Risk and Volatility

Seadrill has a beta of 1.48, suggesting that its stock price is 48% more volatile than the S&P 500. Comparatively, Sauer Energy has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500.

Summary

Seadrill beats Sauer Energy on 10 of the 10 factors compared between the two stocks.

About Seadrill

Seadrill Ltd. engages in the provision of offshore drilling services to the oil and gas industry. It operates through the following segments: Floaters, Jack-up rigs, and Other. The Floaters segment encompasses drilling, completion, and maintenance of offshore exploration and production wells. the Jack-up Rigs segment includes drilling contracts relate to jack-up rigs for operations in harsh and benign environments in shallow water. The Other segment represents management services to third parties and related parties. The company was founded on May 10, 2005 and is headquartered in Hamilton, Bermuda.

About Sauer Energy

Sauer Energy, Inc. develops and markets vertical axis wind turbines (VAWT) systems. The company focuses on providing its VAWT systems primarily under the WindCutter name. Its VAWT systems are would be used in residential and commercial buildings, oil rigs and off-shore platforms, ships, Islands and other remote facilities, and communications towers and bridges, as well as various industrial applications. Sauer Energy, Inc. was founded in 2008 and is headquartered in Oxnard, California.