Analyzing Weatherford International (NASDAQ:WFRD) & Borr Drilling (NYSE:BORR)

Weatherford International (NASDAQ:WFRD) and Borr Drilling (NYSE:BORR) are both energy companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, earnings, profitability, risk and valuation.

Analyst Recommendations

This is a summary of recent ratings for Weatherford International and Borr Drilling, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Weatherford International	1	2	7	0	2.60
Borr Drilling	2	1	0	2	2.40

Weatherford International currently has a consensus price target of $114.50, indicating a potential upside of 36.10%. Borr Drilling has a consensus price target of $5.27, indicating a potential upside of 24.07%. Given Weatherford International’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Weatherford International is more favorable than Borr Drilling.

Risk and Volatility

Weatherford International has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, Borr Drilling has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500.

Institutional and Insider Ownership

97.2% of Weatherford International shares are held by institutional investors. Comparatively, 83.1% of Borr Drilling shares are held by institutional investors. 2.1% of Weatherford International shares are held by company insiders. Comparatively, 7.9% of Borr Drilling shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Weatherford International	7.66%	21.50%	7.09%
Borr Drilling	-23.98%	-5.95%	-1.84%

Valuation and Earnings

This table compares Weatherford International and Borr Drilling”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Weatherford International	$4.92 billion	1.22	$431.00 million	$5.07	16.59
Borr Drilling	$1.02 billion	1.31	$45.00 million	($0.78)	-5.44

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

Summary

Weatherford International beats Borr Drilling on 11 of the 15 factors compared between the two stocks.

About Weatherford International

Weatherford International plc, an energy services company, provides equipment and services for the drilling, evaluation, completion, production, and intervention of oil, geothermal, and natural gas wells worldwide. The company operates through three segments: Drilling and Evaluation; Well Construction and Completions; and Production and Intervention. It offers artificial lift systems, including reciprocating rod, progressing cavity pumping, gas, hydraulic, plunger, and hybrid lift systems, as well as related automation and control systems; pressure pumping and reservoir stimulation services, such as acidizing, fracturing, cementing, and coiled-tubing intervention; and software, automation and flow measurement solutions. The company also provides safety, downhole reservoir monitoring, flow control, and multistage fracturing systems, as well as sand-control technologies, and production and isolation packers; liner hangers to suspend a casing string in high-temperature and high-pressure wells; cementing products, including plugs, float and stage equipment, and torque-and-drag reduction technology for zonal isolation; and pre-job planning and installation services. In addition, it offers directional drilling services, and logging and measurement services while drilling; services related to rotary-steerable systems, high temperature and high pressure sensors, drilling reamers, and circulation subs; rotating control devices and advanced automated control systems, as well as closed loop drilling, air drilling, managed-pressure drilling, and underbalanced drilling services; open-hole and cased-hole logging services; and intervention and remediation services. Further, it provides tubular handling, management, and connection services; and re-entry, fishing, and well abandonment services, as well as patented bottom hole, tubular-handling equipment, pressure-control equipment, and drill pipe and collars. The company was incorporated in 1972 and is based in Houston, Texas.

About Borr Drilling

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.