Comparing Borr Drilling (NYSE:BORR) and Select Water Solutions (NYSE:WTTR)

Select Water Solutions (NYSE:WTTR) and Borr Drilling (NYSE:BORR) are both energy companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, profitability and risk.

Institutional & Insider Ownership

81.7% of Select Water Solutions shares are owned by institutional investors. Comparatively, 83.1% of Borr Drilling shares are owned by institutional investors. 6.2% of Select Water Solutions shares are owned by insiders. Comparatively, 7.9% of Borr Drilling shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Select Water Solutions has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, Borr Drilling has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500.

Valuation & Earnings

This table compares Select Water Solutions and Borr Drilling”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Select Water Solutions	$1.41 billion	1.51	$21.22 million	$0.28	54.62
Borr Drilling	$1.02 billion	0.98	$45.00 million	($0.78)	-4.07

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Select Water Solutions and Borr Drilling, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Select Water Solutions	0	3	7	0	2.70
Borr Drilling	2	1	0	2	2.40

Select Water Solutions presently has a consensus price target of $24.57, indicating a potential upside of 60.65%. Borr Drilling has a consensus price target of $5.27, indicating a potential upside of 65.88%. Given Borr Drilling’s higher possible upside, analysts plainly believe Borr Drilling is more favorable than Select Water Solutions.

Profitability

This table compares Select Water Solutions and Borr Drilling’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Select Water Solutions	2.24%	3.11%	1.92%
Borr Drilling	-23.98%	-5.95%	-1.84%

Summary

Select Water Solutions beats Borr Drilling on 9 of the 15 factors compared between the two stocks.

About Select Water Solutions

Select Water Solutions, Inc. provides water-management and chemical services to oil and natural gas exploration and production companies. Its services support drilling, completions and ongoing production, with a focus on managing water used in and generated by energy operations. The company’s offerings include water sourcing, transfer, treatment, recycling and disposal, as well as water infrastructure such as pipelines and related facilities. It also supplies specialty chemicals and technical services designed for oilfield operations.

About Borr Drilling

Borr Drilling Limited is an offshore drilling contractor that provides jack-up rigs and related drilling services to oil and gas companies. Its rigs are designed for shallow-water operations, and the company supplies crews and operational support for offshore drilling projects. Founded in 2016, Borr Drilling built its fleet through acquisitions of jack-up rigs from other drilling companies. It serves customers in offshore markets around the world, including regions such as the Middle East, Southeast Asia, West Africa and the North Sea.