Tidewater (NYSE:TDW – Get Free Report) and Valaris (NYSE:VAL – Get Free Report) are both mid-cap energy companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.
Earnings & Valuation
This table compares Tidewater and Valaris”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tidewater | $1.35 billion | 3.37 | $334.66 million | $4.94 | 18.57 |
| Valaris | $2.37 billion | 2.50 | $982.80 million | $13.39 | 6.37 |
Institutional and Insider Ownership
95.1% of Tidewater shares are held by institutional investors. Comparatively, 96.7% of Valaris shares are held by institutional investors. 5.9% of Tidewater shares are held by company insiders. Comparatively, 0.8% of Valaris shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of current recommendations and price targets for Tidewater and Valaris, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tidewater | 0 | 6 | 2 | 1 | 2.44 |
| Valaris | 1 | 8 | 0 | 0 | 1.89 |
Tidewater currently has a consensus target price of $89.33, suggesting a potential downside of 2.60%. Valaris has a consensus target price of $60.94, suggesting a potential downside of 28.58%. Given Tidewater’s stronger consensus rating and higher possible upside, equities analysts clearly believe Tidewater is more favorable than Valaris.
Risk and Volatility
Tidewater has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500. Comparatively, Valaris has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500.
Profitability
This table compares Tidewater and Valaris’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Tidewater | 18.34% | 5.36% | 3.05% |
| Valaris | 43.95% | 9.25% | 5.35% |
Summary
Valaris beats Tidewater on 8 of the 15 factors compared between the two stocks.
About Tidewater
Tidewater Inc., together with its subsidiaries, provides offshore support vessels and marine support services to the offshore energy industry through the operation of a fleet of marine service vessels worldwide. It provides services in support of offshore oil and gas exploration, field development, and production, as well as windfarm development and maintenance, including towing of and anchor handling for mobile offshore drilling units; transporting supplies and personnel necessary to sustain drilling, workover, and production activities; offshore construction, and seismic and subsea support; geotechnical survey support for windfarm construction; and various specialized services, such as pipe and cable laying. The company operates anchor handling towing supply vessels, platform supply vessels, crew boats, utility vessels, and offshore tugs. The company serves integrated and independent oil and gas exploration, field development, and production companies; mid-sized and smaller independent exploration and production companies; foreign government-owned or government-controlled organizations, and other related companies; offshore drilling contractors; and other companies, such as offshore construction, windfarm development, diving, and well stimulation companies. Tidewater Inc. was incorporated in 1956 and is headquartered in Houston, Texas.
About Valaris
Valaris Limited, together with its subsidiaries, provides offshore contract drilling services Gulf of Mexico, South America, North Sea, the Middle East, Africa, and the Asia Pacific. The company operates through four segments: Floaters, Jackups, ARO, and Other. It owns an offshore drilling rig fleet, which include drillships, dynamically positioned semisubmersible rigs, moored semisubmersible rig, and jackup rigs. It serves international, government-owned, and independent oil and gas. Valaris Limited was founded in 1975 and is based in Hamilton, Bermuda.
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