Analyzing SBM Offshore (OTCMKTS:SBFFF) & WBI (NYSE:WBI)

WBI (NYSE:WBI) and SBM Offshore (OTCMKTS:SBFFF) are both energy companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, dividends and risk.

Analyst Recommendations

This is a summary of recent ratings and price targets for WBI and SBM Offshore, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WBI	0	2	4	1	2.86
SBM Offshore	0	0	2	0	3.00

WBI currently has a consensus price target of $36.57, indicating a potential upside of 14.31%. Given WBI’s higher possible upside, research analysts clearly believe WBI is more favorable than SBM Offshore.

Earnings & Valuation

This table compares WBI and SBM Offshore”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WBI	$525.55 million	7.52	$11.89 million	$0.08	399.93
SBM Offshore	N/A	N/A	N/A	$1.13	34.20

WBI has higher revenue and earnings than SBM Offshore. SBM Offshore is trading at a lower price-to-earnings ratio than WBI, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares WBI and SBM Offshore’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WBI	0.54%	0.85%	0.41%
SBM Offshore	N/A	N/A	N/A

Insider & Institutional Ownership

37.7% of SBM Offshore shares are owned by institutional investors. 50.6% of WBI shares are owned 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.

Summary

WBI beats SBM Offshore on 9 of the 12 factors compared between the two stocks.

About WBI

WaterBridge Infrastructure LLC is an integrated, pure-play water infrastructure company. WaterBridge Infrastructure LLC is based in HOUSTON.

About SBM Offshore

SBM Offshore N.V. provides floating production solutions to the offshore energy industry worldwide. It operates in two segments, Lease and Operate, and Turnkey. It engages in the design, supply, installation, operation, lease, and life extension of floating production storage and offloading (FPSO) vessels, as well as semi-submersibles, tension leg floaters, turret mooring systems, floating offshore wind, and brownfield and offshore loading terminals. The company also provides catenary anchor leg mooring (CALM) or single point mooring (SPM) terminals; and solutions for flexible flowline and subsea structure installation works. It operates a fleet of 15 FPSOs and 1 semi-submersible unit. The company was formerly known as IHC Caland and changed its name to SBM Offshore N.V. in 2005. SBM Offshore N.V. was founded in 1862 and is headquartered in Schiphol, the Netherlands.