NOV (NYSE:NOV) and Borr Drilling (NYSE:BORR) Financial Analysis

Borr Drilling (NYSE:BORR) and NOV (NYSE:NOV) are both energy companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Insider and Institutional Ownership

83.1% of Borr Drilling shares are owned by institutional investors. Comparatively, 93.3% of NOV shares are owned by institutional investors. 7.9% of Borr Drilling shares are owned by insiders. Comparatively, 1.1% of NOV 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.

Analyst Ratings

This is a summary of recent recommendations for Borr Drilling and NOV, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Borr Drilling	2	1	0	2	2.40
NOV	2	9	5	0	2.19

Borr Drilling currently has a consensus target price of $5.27, suggesting a potential upside of 19.29%. NOV has a consensus target price of $21.23, suggesting a potential upside of 7.05%. Given Borr Drilling’s stronger consensus rating and higher probable upside, research analysts plainly believe Borr Drilling is more favorable than NOV.

Volatility & Risk

Borr Drilling has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500. Comparatively, NOV has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500.

Valuation & Earnings

This table compares Borr Drilling and NOV”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Borr Drilling	$1.02 billion	1.36	$45.00 million	($0.78)	-5.66
NOV	$8.74 billion	0.81	$145.00 million	$0.26	76.28

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

Profitability

This table compares Borr Drilling and NOV’s 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%
NOV	1.10%	3.44%	1.94%

Summary

NOV beats Borr Drilling on 9 of the 15 factors compared between the two stocks.

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.

About NOV

NOV Inc. designs, constructs, manufactures, and sells systems, components, and products for oil and gas drilling and production, and industrial and renewable energy sectors in the United States and internationally. It operates through two segments, Energy Equipment, and Energy Products and Services. The company provides solids control and waste management equipment and services, managed pressure drilling, drilling fluids, premium drillpipe, wired pipe, drilling optimization services, tubular inspection and coating services, instrumentation, downhole tools, and drill bits. It also offers equipment and technologies for hydraulic fracture stimulation, including downhole multistage fracturing tools, pressure pumping trucks, blenders, sanders, hydration and injection units, flowline, and manifolds; coiled tubing units, and wireline units and tools; connections and liner hangers; onshore production consists of composite pipe, surface transfer and progressive cavity pumps, and artificial lift systems; and offshore production, such as floating production systems and subsea production technologies, as well as manufactures industrial pumps and mixers. In addition, the company provides substructures, derricks, and masts; cranes; jacking systems; pipe lifting, racking, rotating, and assembly systems; mud pumps; pressure control equipment; drives and generators; rig instrumentation and control systems; mooring, anchor, and deck handling machinery; equipment components for offshore wind construction vessels; and pipelay and construction systems. Further, the company offers spare parts, repair, and rentals as well as comprehensive remote equipment monitoring, technical support, field service, and customer training. The company was formerly known as National Oilwell Varco, Inc. and changed its name to NOV Inc. in January 2021. NOV Inc. was founded in 1862 and is based in Houston, Texas.