Saipem (OTCMKTS:SAPMF) versus Seadrill (NYSE:SDRL) Head to Head Contrast

Saipem (OTCMKTS:SAPMF) and Seadrill (NYSE:SDRL) are both energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, analyst recommendations, valuation and risk.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Saipem and Seadrill, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Saipem	0	0	0	1	4.00
Seadrill	0	0	4	0	3.00

Seadrill has a consensus target price of $51.00, indicating a potential upside of 96.30%. Given Seadrill’s higher possible upside, analysts clearly believe Seadrill is more favorable than Saipem.

Volatility & Risk

Saipem has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500. Comparatively, Seadrill has a beta of 1.55, indicating that its stock price is 55% more volatile than the S&P 500.

Profitability

This table compares Saipem and Seadrill’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Saipem	N/A	N/A	N/A
Seadrill	27.49%	4.68%	3.31%

Earnings and Valuation

This table compares Saipem and Seadrill”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Saipem	$15.75 billion	0.34	$331.16 million	N/A	N/A
Seadrill	$1.39 billion	1.17	$446.00 million	$5.29	4.91

Seadrill has lower revenue, but higher earnings than Saipem.

Insider and Institutional Ownership

95.7% of Seadrill shares are held by institutional investors. 0.2% of Seadrill shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Seadrill beats Saipem on 10 of the 13 factors compared between the two stocks.

About Saipem

Saipem SpA provides energy and infrastructure solutions worldwide. The company operates through Asset Based Services, Offshore Drilling, and Energy Carriers segments. It offers development of subsea fields and pipelaying; installation and lifting of offshore structures; and engineering, implementation, installation, maintenance, modification, and decommissioning activities. The company also engages in onshore engineering and construction, sustainable infrastructures, and robotics and industrialized solutions; and offshore engineering and construction, and wind activities. In addition, the company provides procurement, construction, project management, and engineering integrated services to the oil and gas, civil and marine infrastructure, and environmental markets. Saipem S.p.A. was founded in 1957 and is headquartered in Milan, Italy.

About Seadrill

Seadrill Ltd. engages in the provision of offshore drilling services to the oil and gas industry. It operates through the following segments: Floaters, Jack-up rigs, and Other. The Floaters segment encompasses drilling, completion, and maintenance of offshore exploration and production wells. the Jack-up Rigs segment includes drilling contracts relate to jack-up rigs for operations in harsh and benign environments in shallow water. The Other segment represents management services to third parties and related parties. The company was founded on May 10, 2005 and is headquartered in Hamilton, Bermuda.