Critical Contrast: Seadrill Limited (SDRL) and Antero Resources Corporation (AR)
Seadrill Limited (NYSE: SDRL) and Antero Resources Corporation (NYSE:AR) are both oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, earnings, profitabiliy, analyst recommendations, risk and valuation.
This is a breakdown of current ratings and recommmendations for Seadrill Limited and Antero Resources Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Antero Resources Corporation||0||7||11||1||2.68|
Antero Resources Corporation has a consensus price target of $32.56, suggesting a potential upside of 51.95%. Given Antero Resources Corporation’s stronger consensus rating and higher possible upside, analysts clearly believe Antero Resources Corporation is more favorable than Seadrill Limited.
Risk & Volatility
Seadrill Limited has a beta of 2.66, meaning that its share price is 166% more volatile than the S&P 500. Comparatively, Antero Resources Corporation has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500.
This table compares Seadrill Limited and Antero Resources Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Antero Resources Corporation||N/A||2.17%||1.19%|
Earnings & Valuation
This table compares Seadrill Limited and Antero Resources Corporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Seadrill Limited||$2.65 billion||0.08||$1.44 billion||($0.38)||-1.16|
|Antero Resources Corporation||$2.48 billion||2.73||$347.00 million||($2.05)||-10.45|
Seadrill Limited has higher revenue and earnings than Antero Resources Corporation. Antero Resources Corporation is trading at a lower price-to-earnings ratio than Seadrill Limited, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
28.7% of Seadrill Limited shares are held by institutional investors. Comparatively, 91.8% of Antero Resources Corporation shares are held by institutional investors. 10.8% of Antero Resources Corporation shares are held 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.
Antero Resources Corporation beats Seadrill Limited on 9 of the 15 factors compared between the two stocks.
About Seadrill Limited
Seadrill Limited is an offshore drilling contractor providing offshore drilling services to the oil and gas industry. The Company’s primary business is the ownership and operation of drillships, semi-submersible rigs and jack-up rigs for operations in shallow-, mid-, deep-, and ultra deepwater areas, and in benign and harsh environments. The Company’s segments are Floaters and Jack-ups. The Company offers services encompassing drilling, completion and maintenance of offshore exploration and production wells. The Company contracts its drilling units primarily on a dayrate basis to drill wells for its customers. The Company has a fleet of approximately 38 offshore drilling units consisting of over 12 semi-submersible rigs, approximately seven drillships and over 19 jack-up rigs in operation, and contracts for the construction of approximately 13 offshore drilling units. The Company also provides management services to certain unconsolidated companies in which its holds investments.
About Antero Resources Corporation
Antero Resources Corporation is an oil and natural gas company. The Company is engaged in the exploration, development and acquisition of natural gas, natural gas liquids (NGLs) and oil properties located in the Appalachian Basin. The Company’s segments include the exploration, development and production of natural gas, NGLs and oil; gathering and processing; water handling and treatment, and marketing of excess firm transportation capacity. The Company’s subsidiary, Antero Midstream Partners LP (Antero Midstream) is a master limited partnership, which owns, operates and develops midstream energy infrastructure primarily to service its production and completion activity. Its exploration and development activities are supported by the natural gas gathering and compression assets of its subsidiary, Antero Midstream, as well as by third party gathering and compression arrangements. It also has access to additional low-pressure and high-pressure pipelines.
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