Seadrill (NYSE:SDRL – Get Free Report) and WBI (NYSE:WBI – Get Free Report) are both mid-cap energy companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.
Profitability
This table compares Seadrill and WBI’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Seadrill | -4.79% | -1.84% | -1.31% |
| WBI | 0.54% | 0.84% | 0.41% |
Valuation and Earnings
This table compares Seadrill and WBI”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Seadrill | $1.44 billion | 1.88 | -$77.00 million | ($1.12) | -38.55 |
| WBI | $525.55 million | 7.53 | $11.89 million | $0.08 | 400.53 |
WBI has lower revenue, but higher earnings than Seadrill. Seadrill is trading at a lower price-to-earnings ratio than WBI, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
95.7% of Seadrill shares are owned by institutional investors. 0.5% of Seadrill shares are owned by company insiders. Comparatively, 50.6% of WBI shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent recommendations for Seadrill and WBI, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Seadrill | 1 | 2 | 3 | 3 | 2.89 |
| WBI | 0 | 2 | 3 | 0 | 2.60 |
Seadrill presently has a consensus target price of $55.00, indicating a potential upside of 27.37%. WBI has a consensus target price of $34.20, indicating a potential upside of 6.73%. Given Seadrill’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Seadrill is more favorable than WBI.
Summary
WBI beats Seadrill on 8 of the 13 factors compared between the two stocks.
About Seadrill
Seadrill Ltd. engages in the provision of offshore drilling services to the oil and gas industry. It operates through the following segments: Floaters, Jack-up rigs, and Other. The Floaters segment encompasses drilling, completion, and maintenance of offshore exploration and production wells. the Jack-up Rigs segment includes drilling contracts relate to jack-up rigs for operations in harsh and benign environments in shallow water. The Other segment represents management services to third parties and related parties. The company was founded on May 10, 2005 and is headquartered in Hamilton, Bermuda.
About WBI
WaterBridge Infrastructure LLC is an integrated, pure-play water infrastructure company. WaterBridge Infrastructure LLC is based in HOUSTON.
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