Reviewing Seadrill (NYSE:SDRL) & DMC Global (NASDAQ:BOOM)

DMC Global (NASDAQ:BOOM) and Seadrill (NYSE:SDRL) are both energy companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, valuation, institutional ownership and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DMC Global	-3.37%	-6.84%	-2.57%
Seadrill	0.07%	0.64%	0.46%

Volatility and Risk

DMC Global has a beta of 1.76, indicating that its stock price is 76% more volatile than the S&P 500. Comparatively, Seadrill has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for DMC Global and Seadrill, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DMC Global	1	2	1	0	2.00
Seadrill	1	1	3	4	3.11

DMC Global presently has a consensus price target of $9.00, suggesting a potential upside of 46.65%. Seadrill has a consensus price target of $59.40, suggesting a potential upside of 24.89%. Given DMC Global’s higher probable upside, research analysts plainly believe DMC Global is more favorable than Seadrill.

Institutional & Insider Ownership

77.6% of DMC Global shares are held by institutional investors. Comparatively, 95.7% of Seadrill shares are held by institutional investors. 7.1% of DMC Global shares are held by company insiders. Comparatively, 0.5% of Seadrill shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares DMC Global 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
DMC Global	$609.84 million	0.21	-$13.45 million	($0.93)	-6.60
Seadrill	$1.44 billion	2.07	-$77.00 million	$0.03	1,585.43

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

Summary

Seadrill beats DMC Global on 11 of the 15 factors compared between the two stocks.

About DMC Global

DMC Global Inc. provides a suite of engineered products and various solutions for the construction, energy, industrial processing, and transportation markets worldwide. The company operates through three segments: Arcadia, DynaEnergetics, and NobelClad. The Arcadia segment manufactures, assembles, and sells architectural building products, including exterior and interior framing systems, curtain walls, windows, doors, and interior partitions; architectural components, architectural framing systems, entrance systems, and sun control products; sliding and glazing systems; and thermally broken steel, aluminum windows and doors, and wood doors and windows. It sells its products through a national in-house sales force for buildings, such as office towers, airports, hotels, education and athletic facilities, health care locations, government buildings, retail centers, mixed use, and multi-family residential buildings. The DynaEnergetics segment designs, manufactures, markets, and sells perforating systems, including initiation systems, shaped charges, detonating cords, gun hardware, and control panels; and perforating systems and associated hardware for the oil and gas industry. It sells its products through direct selling, distributors, and independent sales representatives. The NobelClad segment produces and sells explosion-welded clad metal plates for use in the construction of heavy, corrosion resistant pressure vessels, and heat exchangers for oil and gas, chemical and petrochemical, alternative energy, hydrometallurgy, aluminum production, shipbuilding, rail car manufacturing, power generation, and industrial refrigeration industries. It sells its products through direct sales personnel, program managers, and independent sales representatives. The company was formerly known as Dynamic Materials Corporation and changed its name to DMC Global Inc. in November 2016. DMC Global Inc. was founded in 1965 and is headquartered in Broomfield, Colorado.

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.