Contrasting Borr Drilling (NYSE:BORR) & SLB (NYSE:SLB)

SLB (NYSE:SLB) and Borr Drilling (NYSE:BORR) are both energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.

Insider and Institutional Ownership

82.0% of SLB shares are held by institutional investors. Comparatively, 83.1% of Borr Drilling shares are held by institutional investors. 0.2% of SLB shares are held by insiders. Comparatively, 7.9% of Borr Drilling shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for SLB and Borr Drilling, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SLB	1	2	18	2	2.91
Borr Drilling	1	2	0	2	2.60

SLB currently has a consensus target price of $61.35, indicating a potential upside of 6.79%. Borr Drilling has a consensus target price of $5.27, indicating a potential upside of 15.75%. Given Borr Drilling’s higher probable upside, analysts clearly believe Borr Drilling is more favorable than SLB.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SLB	8.53%	14.05%	6.95%
Borr Drilling	-23.98%	-5.95%	-1.84%

Valuation and Earnings

This table compares SLB and Borr Drilling”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SLB	$35.71 billion	2.39	$3.37 billion	$2.07	27.75
Borr Drilling	$1.02 billion	1.41	$45.00 million	($0.78)	-5.83

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

Risk and Volatility

SLB has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, Borr Drilling has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500.

Summary

SLB beats Borr Drilling on 10 of the 14 factors compared between the two stocks.

About SLB

Schlumberger Limited engages in the provision of technology for the energy industry worldwide. The company operates through four divisions: Digital & Integration, Reservoir Performance, Well Construction, and Production Systems. The company provides field development and hydrocarbon production, carbon management, and integration of adjacent energy systems; reservoir interpretation and data processing services for exploration data; and well construction and production improvement services and products. It also offers subsurface geology and fluids evaluation information; open and cased hole services; exploration and production pressure, and flow-rate measurement services; and pressure pumping, well stimulation, and coiled tubing equipment solutions. In addition, the company offers mud logging, directional drilling, measurement-while-drilling, and logging-while-drilling services, as well as engineering support services; supplies drilling fluid systems; designs, manufactures, and markets roller cone and fixed cutter drill bits; bottom-hole-assembly and borehole enlargement technologies; well cementing products and services; well planning, well drilling, engineering, supervision, logistics, procurement, and contracting of third parties, as well as drilling rig management solutions; and drilling equipment and services, as well as land drilling rigs and related services. Further, it provides artificial lift production equipment and optimization services; supplies packers, safety valves, sand control technology, and various intelligent well completions technology and equipment; designs and manufactures valves, chokes, actuators, and surface trees; and OneSubsea, an integrated solutions, products, systems, and services, including wellheads, subsea trees, manifolds and flowline connectors, control systems, connectors, and services. The company was formerly known as Socie´te´ de Prospection E´lectrique. Schlumberger Limited was founded in 1926 and is based in Houston, Texas.

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.