Diamond Offshore Drilling (NYSE: DO) is one of 18 publicly-traded companies in the “Oil & Gas Drilling” industry, but how does it compare to its rivals? We will compare Diamond Offshore Drilling to similar companies based on the strength of its dividends, earnings, analyst recommendations, institutional ownership, valuation, risk and profitability.
Institutional and Insider Ownership
74.8% 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 hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Diamond Offshore Drilling and its rivals revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Diamond Offshore Drilling||$1.48 billion||$660.47 million||13.71|
|Diamond Offshore Drilling Competitors||$1.42 billion||$539.44 million||-11.53|
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 and Risk
Diamond Offshore Drilling has a beta of 1.19, meaning 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, meaning that their average share price is 89% more volatile than the S&P 500.
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||10.86%||6.25%||3.75%|
|Diamond Offshore Drilling Competitors||-24.26%||-8.93%||-2.83%|
This is a summary of recent recommendations and price targets for Diamond Offshore Drilling and its rivals, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Diamond Offshore Drilling||8||12||2||0||1.73|
|Diamond Offshore Drilling Competitors||495||1538||1245||57||2.26|
Diamond Offshore Drilling currently has a consensus target price of $14.32, indicating a potential downside of 14.39%. As a group, “Oil & Gas Drilling” companies have a potential upside of 20.48%. Given Diamond Offshore Drilling’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Diamond Offshore Drilling has less favorable growth aspects than its rivals.
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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