Critical Analysis: Expro Group (NYSE:XPRO) & Borr Drilling (NYSE:BORR)

Borr Drilling (NYSE:BORR – Get Free Report) and Expro Group (NYSE:XPRO – Get Free Report) are both small-cap energy companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, earnings, risk, valuation and institutional ownership.

Risk & Volatility

Borr Drilling has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500. Comparatively, Expro Group has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500.

Earnings & Valuation

This table compares Borr Drilling and Expro Group”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Borr Drilling $1.02 billion 1.40 $45.00 million ($0.78) -5.81
Expro Group $1.61 billion 1.13 $51.69 million $0.18 89.86

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

Insider & Institutional Ownership

83.1% of Borr Drilling shares are held by institutional investors. Comparatively, 92.1% of Expro Group shares are held by institutional investors. 7.9% of Borr Drilling shares are held by company insiders. Comparatively, 1.8% of Expro Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Borr Drilling -23.98% -5.95% -1.84%
Expro Group 1.33% 3.28% 2.19%

Analyst Recommendations

This is a summary of recent recommendations for Borr Drilling and Expro Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Borr Drilling 2 1 0 2 2.40
Expro Group 2 2 2 1 2.29

Borr Drilling currently has a consensus price target of $5.27, suggesting a potential upside of 16.13%. Expro Group has a consensus price target of $18.00, suggesting a potential upside of 11.29%. Given Borr Drilling’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Borr Drilling is more favorable than Expro Group.

Summary

Expro Group beats Borr Drilling on 9 of the 15 factors compared between the two stocks.

About Borr Drilling

(Get Free Report)

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 Expro Group

(Get Free Report)

Expro Group Holdings N.V. engages in the provision of energy services in North and Latin America, Europe and Sub-Saharan Africa, the Middle East and North Africa, and the Asia-Pacific. The company provides well construction services, such as technology solutions in drilling, tubular running services, and cementing and tubulars; and well management services, including well flow management, subsea well access, and well intervention and integrity solutions. It serves exploration and production companies in onshore and offshore environments in approximately 60 countries. Expro Group Holdings N.V. was founded in 1938 and is based in Houston, Texas.

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