Weatherford International (NASDAQ:WFRD – Get Free Report) and Borr Drilling (NYSE:BORR – Get Free Report) are both energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, profitability, valuation, dividends, institutional ownership and earnings.
Analyst Ratings
This is a summary of current recommendations for Weatherford International and Borr Drilling, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Weatherford International | 1 | 2 | 7 | 0 | 2.60 |
| Borr Drilling | 2 | 1 | 0 | 2 | 2.40 |
Weatherford International currently has a consensus target price of $114.50, suggesting a potential upside of 34.58%. Borr Drilling has a consensus target price of $5.27, suggesting a potential upside of 25.25%. Given Weatherford International’s stronger consensus rating and higher possible upside, research analysts clearly believe Weatherford International is more favorable than Borr Drilling.
Volatility & Risk
Institutional and Insider Ownership
97.2% of Weatherford International shares are held by institutional investors. Comparatively, 83.1% of Borr Drilling shares are held by institutional investors. 2.1% of Weatherford International shares are held by insiders. Comparatively, 7.9% of Borr Drilling shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Weatherford International and Borr Drilling”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Weatherford International | $4.92 billion | 1.24 | $431.00 million | $5.07 | 16.78 |
| Borr Drilling | $1.02 billion | 1.31 | $45.00 million | ($0.78) | -5.39 |
Weatherford International has higher revenue and earnings than Borr Drilling. Borr Drilling is trading at a lower price-to-earnings ratio than Weatherford International, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Weatherford International and Borr Drilling’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Weatherford International | 7.66% | 21.50% | 7.09% |
| Borr Drilling | -23.98% | -5.95% | -1.84% |
Dividends
Weatherford International pays an annual dividend of $1.10 per share and has a dividend yield of 1.3%. Borr Drilling pays an annual dividend of $0.10 per share and has a dividend yield of 2.4%. Weatherford International pays out 21.7% of its earnings in the form of a dividend. Borr Drilling pays out -12.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Borr Drilling is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Weatherford International beats Borr Drilling on 11 of the 17 factors compared between the two stocks.
About Weatherford International
Weatherford International plc, an energy services company, provides equipment and services for the drilling, evaluation, completion, production, and intervention of oil, geothermal, and natural gas wells worldwide. The company operates through three segments: Drilling and Evaluation; Well Construction and Completions; and Production and Intervention. It offers artificial lift systems, including reciprocating rod, progressing cavity pumping, gas, hydraulic, plunger, and hybrid lift systems, as well as related automation and control systems; pressure pumping and reservoir stimulation services, such as acidizing, fracturing, cementing, and coiled-tubing intervention; and software, automation and flow measurement solutions. The company also provides safety, downhole reservoir monitoring, flow control, and multistage fracturing systems, as well as sand-control technologies, and production and isolation packers; liner hangers to suspend a casing string in high-temperature and high-pressure wells; cementing products, including plugs, float and stage equipment, and torque-and-drag reduction technology for zonal isolation; and pre-job planning and installation services. In addition, it offers directional drilling services, and logging and measurement services while drilling; services related to rotary-steerable systems, high temperature and high pressure sensors, drilling reamers, and circulation subs; rotating control devices and advanced automated control systems, as well as closed loop drilling, air drilling, managed-pressure drilling, and underbalanced drilling services; open-hole and cased-hole logging services; and intervention and remediation services. Further, it provides tubular handling, management, and connection services; and re-entry, fishing, and well abandonment services, as well as patented bottom hole, tubular-handling equipment, pressure-control equipment, and drill pipe and collars. The company was incorporated in 1972 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.
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