Contrasting Borr Drilling (BORR) and Its Peers

Borr Drilling (NYSE:BORR) is one of 177 publicly-traded companies in the “Energy Equipment & Services” industry, but how does it contrast to its peers? We will compare Borr Drilling to related companies based on the strength of its institutional ownership, dividends, analyst recommendations, risk, profitability, valuation and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for Borr Drilling and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Borr Drilling	2	1	0	2	2.40
Borr Drilling Competitors	1679	6840	8625	490	2.45

Borr Drilling presently has a consensus price target of $5.27, suggesting a potential upside of 63.82%. As a group, “Energy Equipment & Services” companies have a potential upside of 36.91%. Given Borr Drilling’s higher possible upside, equities research analysts plainly believe Borr Drilling is more favorable than its peers.

Valuation & Earnings

This table compares Borr Drilling and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Borr Drilling	$1.02 billion	$45.00 million	-4.12
Borr Drilling Competitors	$3.23 billion	$29.73 million	12.90

Borr Drilling’s peers have higher revenue, but lower earnings than Borr Drilling. Borr Drilling is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

83.1% of Borr Drilling shares are held by institutional investors. Comparatively, 48.9% of shares of all “Energy Equipment & Services” companies are held by institutional investors. 7.9% of Borr Drilling shares are held by company insiders. Comparatively, 12.3% of shares of all “Energy Equipment & Services” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Borr Drilling has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500. Comparatively, Borr Drilling’s peers have a beta of 0.82, indicating that their average stock price is 18% less volatile than the S&P 500.

Profitability

This table compares Borr Drilling and its peers’ 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%
Borr Drilling Competitors	-10.65%	7.48%	1.47%

Summary

Borr Drilling peers beat Borr Drilling on 8 of the 13 factors compared.

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.