Drilling Tools International (NASDAQ:DTI) vs. Borr Drilling (NYSE:BORR) Head to Head Contrast

Drilling Tools International (NASDAQ:DTI) and Borr Drilling (NYSE:BORR) are both small-cap energy companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, analyst recommendations, profitability, dividends, institutional ownership and risk.

Risk and Volatility

Drilling Tools International has a beta of -0.62, meaning that its share price is 162% less volatile than the S&P 500. Comparatively, Borr Drilling has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500.

Insider and Institutional Ownership

2.8% of Drilling Tools International shares are owned by institutional investors. Comparatively, 83.1% of Borr Drilling shares are owned by institutional investors. 17.1% of Drilling Tools International shares are owned by company insiders. Comparatively, 7.9% of Borr Drilling shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Drilling Tools International and Borr Drilling”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Drilling Tools International	$159.63 million	0.58	-$3.76 million	($0.09)	-29.28
Borr Drilling	$1.02 billion	1.50	$45.00 million	($0.78)	-6.17

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Drilling Tools International	1	1	0	1	2.33
Borr Drilling	1	2	0	2	2.60

Drilling Tools International presently has a consensus price target of $2.80, indicating a potential upside of 6.26%. Borr Drilling has a consensus price target of $5.27, indicating a potential upside of 9.38%. Given Borr Drilling’s stronger consensus rating and higher probable upside, analysts plainly believe Borr Drilling is more favorable than Drilling Tools International.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Drilling Tools International	-1.97%	0.58%	0.31%
Borr Drilling	-23.98%	-5.95%	-1.84%

Summary

Borr Drilling beats Drilling Tools International on 9 of the 14 factors compared between the two stocks.

About Drilling Tools International

Drilling Tools International Corporation provides oilfield equipment and services to oil and natural gas sectors in North America, Europe, and the Middle East. It offers downhole tool rentals, machining, and inspection services to support the global drilling and wellbore construction industry. The company also provides products are bottom hole assembly components, such as stabilizers, subs, non-magnetic and steel drill collars, hole openers, and roller reamers, as well as drill pipe and drill pipe accessories; ancillary equipment and handling tools to support its rental platform, including float valves, ring gauges, tool baskets, lift bail, lift subs, mud magnets, elevators, bracket and bail assemblies, slips, tongs, stabbing guides and safety clamps; and blowout preventers, and pressure control accessory equipment. In addition, it offers tool rental services, which consists of rental, inspection, machining, and repair services; rents downhole drilling tools used in horizontal and directional drilling of oil and natural gas; rents kellys, pip joints, work strings; maintains a fleet of rental equipment consisting of drill collars, stabilizers, crossover subs, wellbore conditioning tools, drill pipe, hevi-wate drill pipe, and tubing; rents surface control equipment, such as blowout preventers and handling tools; and provides downhole products for producing wells. Drilling Tools International Corporation is headquartered 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.