Financial Review: Solar Integrated Roofing (OTCMKTS:SIRC) vs. Nabors Industries (NYSE:NBR)

Nabors Industries (NYSE:NBR) and Solar Integrated Roofing (OTCMKTS:SIRC) are both small-cap energy companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, earnings, valuation, profitability and dividends.

Profitability

This table compares Nabors Industries and Solar Integrated Roofing’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nabors Industries	-5.93%	-32.96%	-3.43%
Solar Integrated Roofing	-623.62%	N/A	N/A

Institutional & Insider Ownership

81.9% of Nabors Industries shares are owned by institutional investors. 7.3% of Nabors Industries shares are owned by insiders. Comparatively, 4.3% of Solar Integrated Roofing shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Nabors Industries has a beta of 1.49, meaning that its share price is 49% more volatile than the S&P 500. Comparatively, Solar Integrated Roofing has a beta of 0.04, meaning that its share price is 96% less volatile than the S&P 500.

Valuation and Earnings

This table compares Nabors Industries and Solar Integrated Roofing”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nabors Industries	$2.93 billion	0.09	-$176.08 million	($22.36)	-1.23
Solar Integrated Roofing	$37.31 million	0.03	-$27.40 million	($0.03)	0.00

Solar Integrated Roofing has lower revenue, but higher earnings than Nabors Industries. Nabors Industries is trading at a lower price-to-earnings ratio than Solar Integrated Roofing, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Nabors Industries and Solar Integrated Roofing, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nabors Industries	0	6	1	0	2.14
Solar Integrated Roofing	0	0	0	0	0.00

Nabors Industries currently has a consensus target price of $73.33, indicating a potential upside of 165.94%. Given Nabors Industries’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Nabors Industries is more favorable than Solar Integrated Roofing.

Summary

Nabors Industries beats Solar Integrated Roofing on 9 of the 14 factors compared between the two stocks.

About Nabors Industries

Nabors Industries Ltd. provides drilling and drilling-related services for land-based and offshore oil and natural gas wells in the United States and internationally. The company operates through four segments: U.S. Drilling, International Drilling, Drilling Solutions, and Rig Technologies. It provides tubular running services, including casing and tubing running, and torque monitoring; managed pressure drilling services; and drilling-bit steering systems and rig instrumentation software. The company also offers drilling systems comprising ROCKit, a directional steering control system; SmartNAV, a collaborative guidance and advisory platform; SmartSLIDE, a directional steering control system; and RigCLOUD, a digital infrastructure to integrate applications to deliver real-time insight into operations across the rig fleet. In addition, it operates a fleet of land-based drilling rigs and marketed platforms rigs; manufactures and sells top drives, catwalks, wrenches, drawworks, and other drilling related equipment, such as robotic systems and downhole tools; and provides aftermarket sales and services for the installed base of its equipment. Nabors Industries Ltd. was founded in 1952 and is based in Hamilton, Bermuda.

About Solar Integrated Roofing

Solar Integrated Roofing Corp. provides integrated, single-source solar power and roofing systems installation services for commercial and residential properties in the United States. It offers battery backup, electric vehicle charging, roofing, and related HVAC/electrical contracting works; and sells solar panels. The company was formerly known as Landstar Development Group, Inc. and changed its name to Solar Integrated Roofing Corp. in November 2015. Solar Integrated Roofing Corp. was incorporated in 2007 and is based in Henderson, Nevada.