Critical Review: New Source Energy Partners (OTCMKTS:NSLPQ) and Borr Drilling (NYSE:BORR)

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

Profitability

This table compares Borr Drilling and New Source Energy Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Borr Drilling	5.48%	5.46%	1.60%
New Source Energy Partners	N/A	N/A	N/A

Insider & Institutional Ownership

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

Analyst Ratings

This is a breakdown of recent recommendations for Borr Drilling and New Source Energy Partners, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Borr Drilling	0	3	0	0	2.00
New Source Energy Partners	0	0	0	0	0.00

Borr Drilling presently has a consensus price target of $2.83, suggesting a potential downside of 3.09%. Given New Source Energy Partners’ higher possible upside, analysts plainly believe New Source Energy Partners is more favorable than Borr Drilling.

Earnings & Valuation

This table compares Borr Drilling and New Source Energy Partners”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Borr Drilling	$1.01 billion	0.68	$82.10 million	$0.21	13.88
New Source Energy Partners	N/A	N/A	N/A	N/A	N/A

Borr Drilling has higher revenue and earnings than New Source Energy Partners.

Summary

Borr Drilling beats New Source Energy Partners on 7 of the 8 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 New Source Energy Partners

New Source Energy Partners L.P. acquires, owns, develops, and produces oil and natural gas properties in the United States. It operates through two segments, Exploration and Production, and Oilfield Services. The company also offers various oilfield services, including wellsite services during the drilling and completion stages of a well, such as blowout prevention, surface valve, and flowback services for horizontal and vertical wells in oil, natural gas, and NGL production regions in North America. New Source Energy GP, LLC operates as a general partner of the company. The company was founded in 2012 and is headquartered in Oklahoma City, Oklahoma. On March 15, 2016, New Source Energy Partners LP, along with its affiliate, filed a voluntary petition for liquidation under Chapter 7 in the US Bankruptcy Court for the District of Delaware.