Seadrill (NYSE:SDRL) and National Energy Services Reunited (NASDAQ:NESR) Financial Survey

Seadrill (NYSE:SDRL) and National Energy Services Reunited (NASDAQ:NESR) are both mid-cap energy companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, risk, earnings, analyst recommendations, dividends and valuation.

Institutional and Insider Ownership

95.7% of Seadrill shares are held by institutional investors. Comparatively, 15.6% of National Energy Services Reunited shares are held by institutional investors. 0.5% of Seadrill shares are held by insiders. Comparatively, 9.7% of National Energy Services Reunited shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Seadrill and National Energy Services Reunited, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Seadrill	0	3	3	3	3.00
National Energy Services Reunited	0	2	8	0	2.80

Seadrill currently has a consensus target price of $59.40, suggesting a potential upside of 20.79%. National Energy Services Reunited has a consensus target price of $40.38, suggesting a potential upside of 86.15%. Given National Energy Services Reunited’s higher possible upside, analysts plainly believe National Energy Services Reunited is more favorable than Seadrill.

Volatility & Risk

Seadrill has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500. Comparatively, National Energy Services Reunited has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500.

Valuation and Earnings

This table compares Seadrill and National Energy Services Reunited”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Seadrill	$1.44 billion	2.14	-$77.00 million	$0.03	1,639.17
National Energy Services Reunited	$1.62 billion	1.35	$51.13 million	$0.92	23.58

National Energy Services Reunited has higher revenue and earnings than Seadrill. National Energy Services Reunited is trading at a lower price-to-earnings ratio than Seadrill, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Seadrill and National Energy Services Reunited’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%
National Energy Services Reunited	5.77%	12.07%	6.22%

Summary

National Energy Services Reunited beats Seadrill on 9 of the 15 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 National Energy Services Reunited

National Energy Services Reunited Corp. provides oilfield services in the Middle East and North Africa region. The company’s Production Services segment offers hydraulic fracturing services; coiled tubing services, including nitrogen lifting, fishing, milling, clean-out, scale removal, and other well applications; stimulation and pumping services; primary and remedial cementing services; nitrogen services; filtration services, as well as frac tanks and pumping units; and pipeline and industrial services, such as water filling and hydro testing, nitrogen purging, and de-gassing and pressure testing, as well as cutting/welding and cooling down piping/vessels systems. This segment also provides production assurance chemicals; integrated project management projects; artificial lift services; and surface and subsurface safety systems, high-pressure packer systems, flow controls, service tools, expandable liner technology, vacuum insulated tubing technology for steam applications, and engineering capabilities with manufacturing capacity and testing facilities, as well as sources and treats water for oil and gas, municipal, and industrial use. Its Drilling and Evaluation Services segment offers drilling and workover rigs; rigs and integrated services; fishing and remediation solutions; directional and turbines drilling; drilling fluid systems and related technologies; wireline logging; slickline services for removal of scale, wax and sand build-up, setting plugs, changing out gas lift valves, and fishing and other well applications; and well testing services to measure solids, gas, and oil and water produced from well, as well as rents drilling tools. This segment also provides oilfield solutions for thru-tubing intervention; tubular running services; and a range of wellhead products, flow control equipment, and frac equipment. National Energy Services Reunited Corp. was incorporated in 2017 and is headquartered in Houston, Texas.