Noble Corporation (NYSE: NE) and North Atlantic Drilling (NYSE:NADL) are both small-cap oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, valuation and risk.
Risk & Volatility
Noble Corporation has a beta of 2.28, meaning that its stock price is 128% more volatile than the S&P 500. Comparatively, North Atlantic Drilling has a beta of 3, meaning that its stock price is 200% more volatile than the S&P 500.
Insider and Institutional Ownership
95.6% of Noble Corporation shares are owned by institutional investors. Comparatively, 5.7% of North Atlantic Drilling shares are owned by institutional investors. 1.6% of Noble Corporation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Noble Corporation and North Atlantic Drilling’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Noble Corporation||$1.40 billion||0.68||$639.70 million||($7.21)||-0.54|
|North Atlantic Drilling||$343.90 million||0.08||$157.90 million||($7.96)||-0.14|
Noble Corporation has higher revenue and earnings than North Atlantic Drilling. Noble Corporation is trading at a lower price-to-earnings ratio than North Atlantic Drilling, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and price targets for Noble Corporation and North Atlantic Drilling, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|North Atlantic Drilling||0||0||0||0||N/A|
Noble Corporation currently has a consensus price target of $5.65, indicating a potential upside of 45.31%. Given Noble Corporation’s higher possible upside, analysts clearly believe Noble Corporation is more favorable than North Atlantic Drilling.
This table compares Noble Corporation and North Atlantic Drilling’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|North Atlantic Drilling||-54.37%||-55.80%||-6.69%|
Noble Corporation beats North Atlantic Drilling on 10 of the 12 factors compared between the two stocks.
About Noble Corporation
Noble Corporation is an offshore drilling contractor for the oil and gas industry. The Company performs contract drilling services with its fleet of 79 mobile offshore drilling units and one floating production storage and offloading unit (NYSE:NE) located globally.
About North Atlantic Drilling
North Atlantic Drilling Ltd. operates as an offshore drilling contractor in the North Atlantic region. The company provides harsh environment offshore drilling services to the oil and gas industry primarily in Norway, the United Kingdom, and the Russian Federation. As of December 31, 2016, it owned seven offshore drilling rigs, including three semi-submersibles, one ultra-deep water drillship, and three jack-up rigs. The company was founded in 2011 and is headquartered in Hamilton, Bermuda. North Atlantic Drilling Ltd. is a subsidiary of Seadrill Limited.
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