Rowan Companies (NYSE: SDLP) and Seadrill Partners (NYSE:SDLP) are both small-cap oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.
Insider & Institutional Ownership
97.8% of Rowan Companies shares are held by institutional investors. Comparatively, 16.3% of Seadrill Partners shares are held by institutional investors. 1.6% of Rowan Companies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This table compares Rowan Companies and Seadrill Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Rowan Companies and Seadrill Partners’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Rowan Companies||$1.28 billion||1.58||$72.70 million||($0.64)||-24.91|
|Seadrill Partners||$1.13 billion||0.22||$141.20 million||N/A||N/A|
Seadrill Partners has lower revenue, but higher earnings than Rowan Companies.
This is a summary of current ratings and price targets for Rowan Companies and Seadrill Partners, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Rowan Companies presently has a consensus target price of $15.08, suggesting a potential downside of 5.41%. Given Rowan Companies’ higher probable upside, analysts clearly believe Rowan Companies is more favorable than Seadrill Partners.
Seadrill Partners pays an annual dividend of $0.40 per share and has a dividend yield of 12.0%. Rowan Companies does not pay a dividend.
Risk and Volatility
Rowan Companies has a beta of 1.86, meaning that its stock price is 86% more volatile than the S&P 500. Comparatively, Seadrill Partners has a beta of 2.13, meaning that its stock price is 113% more volatile than the S&P 500.
Seadrill Partners beats Rowan Companies on 7 of the 13 factors compared between the two stocks.
About Rowan Companies
Rowan Companies plc provides offshore oil and gas contract drilling services to the oil and gas industry. The company operates through Deepwater, Jack-ups, and ARO segments. The Deepwater segment operates 4 ultra-deepwater drillships. The Jack-ups segment operates 23 self-elevating jack-up rigs. The ARO segment operates 5 self-elevating jack-up rigs. The company operates in the United States Gulf of Mexico, the United Kingdom, and Norwegian sectors of the North Sea, the Middle East, and Trinidad. Rowan Companies plc was founded in 1923 and is based in Houston, Texas.
About Seadrill Partners
Seadrill Partners LLC owns, operates, and acquires offshore drilling units in the United States, Angola, Thailand, Canada, Equatorial Guinea, Nigeria, Indonesia, Ghana, and internationally. The company primarily serves various oil and gas companies. As of March 31, 2018, its fleet consisted of four semi-submersible drilling rigs, four drillships, and three tender rigs. The company was founded in 2012 and is headquartered in London, the United Kingdom.
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