Valaris (NYSE:VAL) and New Source Energy Partners (OTCMKTS:NSLPQ) Critical Review

New Source Energy Partners (OTCMKTS:NSLPQ) and Valaris (NYSE:VAL) are both energy companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, earnings, institutional ownership, analyst recommendations, risk and profitability.

Insider and Institutional Ownership

96.7% of Valaris shares are owned by institutional investors. 0.7% of Valaris shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares New Source Energy Partners and Valaris’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
New Source Energy Partners	N/A	N/A	N/A
Valaris	12.61%	14.14%	7.06%

Valuation & Earnings

This table compares New Source Energy Partners and Valaris”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
New Source Energy Partners	N/A	N/A	N/A	N/A	N/A
Valaris	$2.36 billion	1.32	$373.40 million	$4.26	10.29

Valaris has higher revenue and earnings than New Source Energy Partners.

Analyst Recommendations

This is a summary of recent recommendations for New Source Energy Partners and Valaris, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
New Source Energy Partners	0	0	0	0	0.00
Valaris	1	6	0	0	1.86

Valaris has a consensus price target of $49.67, indicating a potential upside of 13.26%. Given Valaris’ stronger consensus rating and higher possible upside, analysts plainly believe Valaris is more favorable than New Source Energy Partners.

Volatility and Risk

New Source Energy Partners has a beta of 1.99, indicating that its share price is 99% more volatile than the S&P 500. Comparatively, Valaris has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500.

Summary

Valaris beats New Source Energy Partners on 8 of the 9 factors compared between the two stocks.

About New Source Energy Partners

New Source Energy Partners L.P. acquires, owns, develops, and produces oil and natural gas properties in the United States. It operates through two segments, Exploration and Production, and Oilfield Services. The company also offers various oilfield services, including wellsite services during the drilling and completion stages of a well, such as blowout prevention, surface valve, and flowback services for horizontal and vertical wells in oil, natural gas, and NGL production regions in North America. New Source Energy GP, LLC operates as a general partner of the company. The company was founded in 2012 and is headquartered in Oklahoma City, Oklahoma. On March 15, 2016, New Source Energy Partners LP, along with its affiliate, filed a voluntary petition for liquidation under Chapter 7 in the US Bankruptcy Court for the District of Delaware.

About Valaris

Valaris Limited, together with its subsidiaries, provides offshore contract drilling services Gulf of Mexico, South America, North Sea, the Middle East, Africa, and the Asia Pacific. The company operates through four segments: Floaters, Jackups, ARO, and Other. It owns an offshore drilling rig fleet, which include drillships, dynamically positioned semisubmersible rigs, moored semisubmersible rig, and jackup rigs. It serves international, government-owned, and independent oil and gas. Valaris Limited was founded in 1975 and is based in Hamilton, Bermuda.