Head-To-Head Review: Helix Energy Solutions Group (NYSE:HLX) versus Nabors Industries (NYSE:NBR)

Nabors Industries (NYSE:NBR) and Helix Energy Solutions Group (NYSE:HLX) are both small-cap energy companies, but which is the better business? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, profitability, valuation, earnings and analyst recommendations.

Institutional and Insider Ownership

81.9% of Nabors Industries shares are held by institutional investors. Comparatively, 91.3% of Helix Energy Solutions Group shares are held by institutional investors. 5.3% of Nabors Industries shares are held by company insiders. Comparatively, 6.8% of Helix Energy Solutions Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Nabors Industries and Helix Energy Solutions Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nabors Industries	$3.21 billion	0.40	$286.62 million	$13.44	5.92
Helix Energy Solutions Group	$1.35 billion	1.16	$30.83 million	$0.27	39.33

Nabors Industries has higher revenue and earnings than Helix Energy Solutions Group. Nabors Industries is trading at a lower price-to-earnings ratio than Helix Energy Solutions Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings for Nabors Industries and Helix Energy Solutions Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nabors Industries	0	6	2	0	2.25
Helix Energy Solutions Group	0	2	1	0	2.33

Nabors Industries currently has a consensus target price of $102.57, indicating a potential upside of 28.83%. Helix Energy Solutions Group has a consensus target price of $14.00, indicating a potential upside of 31.83%. Given Helix Energy Solutions Group’s stronger consensus rating and higher possible upside, analysts plainly believe Helix Energy Solutions Group is more favorable than Nabors Industries.

Profitability

This table compares Nabors Industries and Helix Energy Solutions Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nabors Industries	7.64%	-7.06%	-1.45%
Helix Energy Solutions Group	3.04%	2.95%	1.79%

Volatility & Risk

Nabors Industries has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500. Comparatively, Helix Energy Solutions Group has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500.

Summary

Helix Energy Solutions Group beats Nabors Industries on 9 of the 14 factors compared between the two stocks.

About Nabors Industries

Nabors Industries Ltd. provides drilling and drilling-related services for land-based and offshore oil and natural gas wells in the United States and internationally. The company operates through four segments: U.S. Drilling, International Drilling, Drilling Solutions, and Rig Technologies. It provides tubular running services, including casing and tubing running, and torque monitoring; managed pressure drilling services; and drilling-bit steering systems and rig instrumentation software. The company also offers drilling systems comprising ROCKit, a directional steering control system; SmartNAV, a collaborative guidance and advisory platform; SmartSLIDE, a directional steering control system; and RigCLOUD, a digital infrastructure to integrate applications to deliver real-time insight into operations across the rig fleet. In addition, it operates a fleet of land-based drilling rigs and marketed platforms rigs; manufactures and sells top drives, catwalks, wrenches, drawworks, and other drilling related equipment, such as robotic systems and downhole tools; and provides aftermarket sales and services for the installed base of its equipment. Nabors Industries Ltd. was founded in 1952 and is based in Hamilton, Bermuda.

About Helix Energy Solutions Group

Helix Energy Solutions Group, Inc., together with its subsidiaries, an offshore energy services company, provides specialty services to the offshore energy industry in Brazil, the Gulf of Mexico, the East Coast of the United States, North Sea, the Asia Pacific, and West Africa regions. The company operates through four segments: Well Intervention, Robotics, Production Facilities, and Shallow Water Abandonment segments. It engages in the installation of flowlines, control umbilicals, and manifold assemblies and risers; trenching and burial of pipelines; installation and tie-in of riser and manifold assembly; commissioning, testing, and inspection activities; and provision of cable and umbilical lay, and connection services. The company also provides well intervention, intervention engineering, and production enhancement services; coiled tubing operations; inspection, repair, and maintenance of production structures, trees, jumpers, risers, pipelines, and subsea equipment; and related support services. In addition, it offers reclamation and remediation services; well plug and abandonment services; pipeline, cable and umbilical abandonment services; and site inspections. Additionally, the company offers oil and natural gas processing facilities and services; and fast response system, as well as site clearance and subsea support services. Further, it provides offshore oilfield decommissioning and reclamation, project management, engineered solutions, intervention, maintenance, repair, heavy lift, and commercial diving services. It serves independent oil and gas producers and suppliers, pipeline transmission companies, renewable energy companies, and offshore engineering and construction firms. The company was formerly known as Cal Dive International, Inc. and changed its name to Helix Energy Solutions Group, Inc. in March 2006. Helix Energy Solutions Group, Inc. was incorporated in 1979 and is headquartered in Houston, Texas.