Rowan Companies PLC (NYSE: RDC) and Helmerich & Payne (NYSE:HP) are both oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, earnings, profitabiliy, institutional ownership and analyst recommendations.

Profitability

This table compares Rowan Companies PLC and Helmerich & Payne’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rowan Companies PLC -2.62% 0.51% 0.31%
Helmerich & Payne -11.19% -3.37% -2.24%

Volatility and Risk

Rowan Companies PLC has a beta of 1.77, indicating that its share price is 77% more volatile than the S&P 500. Comparatively, Helmerich & Payne has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Rowan Companies PLC and Helmerich & Payne, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rowan Companies PLC 3 13 6 0 2.14
Helmerich & Payne 6 9 6 0 2.00

Rowan Companies PLC presently has a consensus target price of $16.37, suggesting a potential upside of 53.56%. Helmerich & Payne has a consensus target price of $56.06, suggesting a potential upside of 20.81%. Given Rowan Companies PLC’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Rowan Companies PLC is more favorable than Helmerich & Payne.

Dividends

Helmerich & Payne pays an annual dividend of $2.80 per share and has a dividend yield of 6.0%. Rowan Companies PLC does not pay a dividend. Helmerich & Payne pays out -167.7% of its earnings in the form of a dividend. Rowan Companies PLC has increased its dividend for 44 consecutive years and Helmerich & Payne has increased its dividend for 2 consecutive years.

Earnings and Valuation

This table compares Rowan Companies PLC and Helmerich & Payne’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Rowan Companies PLC $1.43 billion 0.94 $627.20 million ($0.31) -34.39
Helmerich & Payne $1.60 billion 3.15 $371.18 million ($1.67) -27.78

Rowan Companies PLC has higher revenue, but lower earnings than Helmerich & Payne. Rowan Companies PLC is trading at a lower price-to-earnings ratio than Helmerich & Payne, indicating that it is currently the more affordable of the two stocks.

Summary

Rowan Companies PLC beats Helmerich & Payne on 9 of the 13 factors compared between the two stocks.

About Rowan Companies PLC

Rowan Companies plc is a provider of offshore contract drilling services to the international oil and gas industry. The Company operates through two segments: deepwater and jack-ups. Its deepwater segment consists of drillship operations. As of December 31, 2016, the Company’s fleet consisted of 29 mobile offshore drilling units, including 25 self-elevating jack-up rigs and four ultra-deepwater drillships. The Company’s fleet operates across the world, including the United States Gulf of Mexico (US GOM), the United Kingdom and Norwegian sectors of the North Sea, the Middle East and Trinidad. As of February 14, 2017, the Company’s drilling fleet consisted of four ultra-deepwater drillships; 19 high-specification cantilever jack-up rigs, and six premium cantilever jack-up rigs. Its jack-ups are capable of drilling wells to maximum depths ranging from 25,000 to 40,000 feet and in maximum water depths ranging from 300 to 550 feet, depending on rig size, location and outfitting.

About Helmerich & Payne

Helmerich & Payne, Inc. is engaged in contract drilling of oil and gas wells for others. The Company operates in the contract drilling industry. The Company’s contract drilling business consists of three segments: U.S. Land, Offshore and International Land. The Company is also engaged in the ownership, development and operation of commercial real estate and the research and development of rotary steerable technology. Its real estate investments are located within Tulsa, Oklahoma, and include a shopping center containing approximately 441,000 leasable square feet, multi-tenant industrial warehouse properties containing approximately one million leasable square feet and approximately 210 acres of undeveloped real estate. The Company provides drilling rigs, equipment, personnel and camps on a contract basis. The Company’s subsidiaries include Helmerich & Payne International Drilling Co. and Helmerich & Payne de Venezuela, C.A.

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