Liberty Energy (NYSE:LBRT – Get Free Report) and Subsea 7 (OTC:SUBCY – Get Free Report) are both mid-cap oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, institutional ownership, risk and valuation.
Insider and Institutional Ownership
98.2% of Liberty Energy shares are owned by institutional investors. Comparatively, 0.0% of Subsea 7 shares are owned by institutional investors. 3.7% of Liberty Energy shares are owned by insiders. Comparatively, 1.0% of Subsea 7 shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of recent recommendations for Liberty Energy and Subsea 7, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Liberty Energy | 0 | 5 | 5 | 3 | 2.85 |
| Subsea 7 | 0 | 1 | 0 | 0 | 2.00 |
Profitability
This table compares Liberty Energy and Subsea 7’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Liberty Energy | 7.32% | 14.28% | 8.60% |
| Subsea 7 | 2.46% | 3.72% | 1.98% |
Dividends
Liberty Energy pays an annual dividend of $0.32 per share and has a dividend yield of 1.8%. Subsea 7 pays an annual dividend of $0.54 per share and has a dividend yield of 3.3%. Liberty Energy pays out 17.1% of its earnings in the form of a dividend. Subsea 7 pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Volatility and Risk
Liberty Energy has a beta of 1.63, indicating that its share price is 63% more volatile than the S&P 500. Comparatively, Subsea 7 has a beta of 1.71, indicating that its share price is 71% more volatile than the S&P 500.
Earnings & Valuation
This table compares Liberty Energy and Subsea 7″s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Liberty Energy | $4.32 billion | 0.68 | $316.01 million | $1.87 | 9.68 |
| Subsea 7 | $5.97 billion | 0.84 | $15.40 million | $0.54 | 30.59 |
Liberty Energy has higher earnings, but lower revenue than Subsea 7. Liberty Energy is trading at a lower price-to-earnings ratio than Subsea 7, indicating that it is currently the more affordable of the two stocks.
Summary
Liberty Energy beats Subsea 7 on 12 of the 17 factors compared between the two stocks.
About Liberty Energy
Liberty Energy Inc. provides hydraulic services and related technologies to onshore oil and natural gas exploration, and production companies in North America. The company offers hydraulic fracturing services, including complementary services, such as wireline services, proppant delivery solutions, field gas processing and treating, compressed natural gas (CNG) delivery, data analytics, related goods comprising sand mine operations, and technologies; and well site fueling and logistics. As of as of December 31, 2023, the company owned and operated a fleet of approximately 40 active hydraulic fracturing; and two sand mines in the Permian Basin. In addition, the company provides services primarily in the Permian Basin, the Williston Basin, the Eagle Ford Shale, the Haynesville Shale, the Appalachian Basin (Marcellus Shale and Utica Shale), the Western Canadian Sedimentary Basin, the Denver-Julesburg Basin (the DJ Basin), and the Anadarko Basin. Liberty Energy Inc. was formerly known as Liberty Oilfield Services Inc. and changed its name to Liberty Energy Inc. in April 2022. The company was founded in 2011 and is headquartered in Denver, Colorado.
About Subsea 7
Subsea 7 S.A. delivers offshore projects and services for the energy industry worldwide. It provides subsea field development products and services, including project management, design and engineering, procurement, fabrication, survey, installation, and commissioning of production facilities on the seabed and the tie-back of its facilities to fixed or floating platforms or to the shore. The company also offers engineering, procurement, commissioning, and installation of subsea umbilicals, risers, and flowlines; inspection, repair, maintenance, remote intervention, and integrity management of subsea infrastructure services; conventional services comprising fabrication, installation, extension, and refurbishment of fixed and floating platforms and associated pipelines in shallow water; and hook-up services. In addition, it operates heavy lifting operations and heavy transportation services for renewables structures; and installs offshore wind turbine foundations, as well as engages in the decommissioning of redundant offshore structures. Further, the company provides remotely operated vehicles (ROVs) and tooling services to support exploration and production activities, as well as engineering and advisory services for customers in the oil and gas, renewables, and utilities industries. The company was incorporated in 1993 and is based in Luxembourg, Luxembourg.
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