NOV (NYSE:NOV – Get Free Report) and Borr Drilling (NYSE:BORR – Get Free Report) are both energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, risk, earnings, profitability, valuation, dividends and institutional ownership.
Analyst Ratings
This is a summary of current ratings and target prices for NOV and Borr Drilling, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NOV | 2 | 9 | 5 | 0 | 2.19 |
| Borr Drilling | 2 | 1 | 0 | 2 | 2.40 |
NOV presently has a consensus price target of $21.23, indicating a potential upside of 12.94%. Borr Drilling has a consensus price target of $5.27, indicating a potential upside of 18.49%. Given Borr Drilling’s stronger consensus rating and higher probable upside, analysts plainly believe Borr Drilling is more favorable than NOV.
Valuation and Earnings
This table compares NOV and Borr Drilling”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NOV | $8.74 billion | 0.77 | $145.00 million | $0.26 | 72.30 |
| Borr Drilling | $1.02 billion | 1.37 | $45.00 million | ($0.78) | -5.70 |
NOV has higher revenue and earnings than Borr Drilling. Borr Drilling is trading at a lower price-to-earnings ratio than NOV, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares NOV and Borr Drilling’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NOV | 1.10% | 3.44% | 1.94% |
| Borr Drilling | -23.98% | -5.95% | -1.84% |
Institutional and Insider Ownership
93.3% of NOV shares are held by institutional investors. Comparatively, 83.1% of Borr Drilling shares are held by institutional investors. 1.1% of NOV shares are held by company insiders. Comparatively, 7.9% of Borr Drilling shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Risk & Volatility
NOV has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500. Comparatively, Borr Drilling has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500.
Summary
NOV beats Borr Drilling on 9 of the 15 factors compared between the two stocks.
About NOV
NOV Inc. designs, constructs, manufactures, and sells systems, components, and products for oil and gas drilling and production, and industrial and renewable energy sectors in the United States and internationally. It operates through two segments, Energy Equipment, and Energy Products and Services. The company provides solids control and waste management equipment and services, managed pressure drilling, drilling fluids, premium drillpipe, wired pipe, drilling optimization services, tubular inspection and coating services, instrumentation, downhole tools, and drill bits. It also offers equipment and technologies for hydraulic fracture stimulation, including downhole multistage fracturing tools, pressure pumping trucks, blenders, sanders, hydration and injection units, flowline, and manifolds; coiled tubing units, and wireline units and tools; connections and liner hangers; onshore production consists of composite pipe, surface transfer and progressive cavity pumps, and artificial lift systems; and offshore production, such as floating production systems and subsea production technologies, as well as manufactures industrial pumps and mixers. In addition, the company provides substructures, derricks, and masts; cranes; jacking systems; pipe lifting, racking, rotating, and assembly systems; mud pumps; pressure control equipment; drives and generators; rig instrumentation and control systems; mooring, anchor, and deck handling machinery; equipment components for offshore wind construction vessels; and pipelay and construction systems. Further, the company offers spare parts, repair, and rentals as well as comprehensive remote equipment monitoring, technical support, field service, and customer training. The company was formerly known as National Oilwell Varco, Inc. and changed its name to NOV Inc. in January 2021. NOV Inc. was founded in 1862 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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