WBI (NYSE:WBI) & Seadrill (NYSE:SDRL) Head-To-Head Review

Seadrill (NYSE:SDRL) and WBI (NYSE:WBI) are both mid-cap energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.

Institutional & Insider Ownership

95.7% of Seadrill shares are owned by institutional investors. 0.5% of Seadrill shares are owned by insiders. Comparatively, 50.6% of WBI shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Seadrill and WBI”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Seadrill	$1.44 billion	2.04	-$77.00 million	$0.03	1,562.33
WBI	$525.55 million	7.45	$11.89 million	$0.08	396.50

WBI has lower revenue, but higher earnings than Seadrill. WBI is trading at a lower price-to-earnings ratio than Seadrill, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations and price targets for Seadrill and WBI, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Seadrill	1	2	3	3	2.89
WBI	0	2	3	0	2.60

Seadrill presently has a consensus target price of $55.00, indicating a potential upside of 17.35%. WBI has a consensus target price of $35.20, indicating a potential upside of 10.97%. Given Seadrill’s stronger consensus rating and higher probable upside, equities analysts clearly believe Seadrill is more favorable than WBI.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Seadrill	0.07%	0.64%	0.46%
WBI	0.54%	0.84%	0.41%

Summary

Seadrill beats WBI on 7 of the 13 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 WBI

WaterBridge Infrastructure LLC is an integrated, pure-play water infrastructure company. WaterBridge Infrastructure LLC is based in HOUSTON.