Head-To-Head Analysis: Expro Group (NYSE:XPRO) vs. Borr Drilling (NYSE:BORR)

Borr Drilling (NYSE:BORR) and Expro Group (NYSE:XPRO) are both small-cap energy companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends.

Analyst Ratings

This is a summary of recent ratings and price targets for Borr Drilling and Expro Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Borr Drilling	2	1	0	2	2.40
Expro Group	2	2	2	1	2.29

Borr Drilling currently has a consensus target price of $5.27, indicating a potential upside of 28.61%. Expro Group has a consensus target price of $18.00, indicating a potential upside of 15.30%. Given Borr Drilling’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Borr Drilling is more favorable than Expro Group.

Insider and Institutional Ownership

83.1% of Borr Drilling shares are owned by institutional investors. Comparatively, 92.1% of Expro Group shares are owned by institutional investors. 7.9% of Borr Drilling shares are owned by company insiders. Comparatively, 1.8% of Expro Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Borr Drilling and Expro Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Borr Drilling	-23.98%	-5.95%	-1.84%
Expro Group	1.33%	3.28%	2.19%

Volatility & Risk

Borr Drilling has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500. Comparatively, Expro Group has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500.

Earnings and Valuation

This table compares Borr Drilling and Expro Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Borr Drilling	$1.02 billion	1.27	$45.00 million	($0.78)	-5.25
Expro Group	$1.61 billion	1.09	$51.69 million	$0.18	86.73

Expro Group has higher revenue and earnings than Borr Drilling. Borr Drilling is trading at a lower price-to-earnings ratio than Expro Group, indicating that it is currently the more affordable of the two stocks.

Summary

Expro Group beats Borr Drilling on 9 of the 15 factors compared between the two stocks.

About Borr Drilling

Borr Drilling Limited operates as an offshore shallow-water drilling contractor to the oil and gas industry worldwide. The company owns, contracts, and operates jack-up drilling rigs for operations in shallow-water areas, including the provision of related equipment and work crews to conduct oil and gas drilling and workover operations for exploration and production. It serves oil and gas exploration and production companies, such as integrated oil companies, state-owned national oil companies, and independent oil and gas companies. The company was formerly known as Magni Drilling Limited and changed its name to Borr Drilling Limited in December 2016. Borr Drilling Limited was incorporated in 2016 and is based in Hamilton, Bermuda.

About Expro Group

Expro Group Holdings N.V. engages in the provision of energy services in North and Latin America, Europe and Sub-Saharan Africa, the Middle East and North Africa, and the Asia-Pacific. The company provides well construction services, such as technology solutions in drilling, tubular running services, and cementing and tubulars; and well management services, including well flow management, subsea well access, and well intervention and integrity solutions. It serves exploration and production companies in onshore and offshore environments in approximately 60 countries. Expro Group Holdings N.V. was founded in 1938 and is based in Houston, Texas.