Diamond Offshore Drilling (NYSE: DO) is one of 18 public companies in the “Oil & Gas Drilling” industry, but how does it contrast to its rivals? We will compare Diamond Offshore Drilling to related companies based on the strength of its institutional ownership, risk, analyst recommendations, dividends, valuation, profitability and earnings.
Insider and Institutional Ownership
74.7% of shares of all “Oil & Gas Drilling” companies are owned by institutional investors. 0.0% of Diamond Offshore Drilling shares are owned by insiders. Comparatively, 2.2% of shares of all “Oil & Gas Drilling” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares Diamond Offshore Drilling and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Diamond Offshore Drilling||11.19%||5.77%||3.42%|
|Diamond Offshore Drilling Competitors||-24.42%||-8.93%||-2.87%|
This is a breakdown of recent recommendations for Diamond Offshore Drilling and its rivals, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Diamond Offshore Drilling||8||13||3||0||1.79|
|Diamond Offshore Drilling Competitors||493||1532||1242||57||2.26|
Diamond Offshore Drilling currently has a consensus target price of $14.46, indicating a potential downside of 8.56%. As a group, “Oil & Gas Drilling” companies have a potential upside of 23.88%. Given Diamond Offshore Drilling’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Diamond Offshore Drilling has less favorable growth aspects than its rivals.
Valuation & Earnings
This table compares Diamond Offshore Drilling and its rivals revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Diamond Offshore Drilling||$1.48 billion||$660.47 million||12.75|
|Diamond Offshore Drilling Competitors||$1.42 billion||$540.19 million||-11.18|
Diamond Offshore Drilling has higher revenue and earnings than its rivals. Diamond Offshore Drilling is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
Volatility & Risk
Diamond Offshore Drilling has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500. Comparatively, Diamond Offshore Drilling’s rivals have a beta of 1.89, indicating that their average share price is 89% more volatile than the S&P 500.
Diamond Offshore Drilling rivals beat Diamond Offshore Drilling on 7 of the 13 factors compared.
About Diamond Offshore Drilling
Diamond Offshore Drilling, Inc. provides contract drilling services to the energy industry. As of December 31, 2016, the Company had a fleet of 24 offshore drilling rigs. As of December 31, 2016, its fleet consisted of four drillships, 19 semisubmersible rigs and one jack-up rig. Its fleet enables it to offer a range of services, primarily in the floater market, including ultra-deepwater, deepwater and mid-water. The principal markets for its offshore contract drilling services are the Gulf of Mexico, including the United States and Mexico; South America, principally offshore Brazil, and Trinidad and Tobago; Australia and Southeast Asia, including Malaysia, Indonesia and Vietnam; Europe, principally offshore the United Kingdom and Norway; East and West Africa; the Mediterranean, and the Middle East. The Company provides offshore drilling services to a customer base that includes independent oil and gas companies, and government-owned oil companies.
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