Contrasting Borr Drilling (NYSE:BORR) & Noble (NYSE:NE)

Borr Drilling (NYSE:BORR) and Noble (NYSE:NE) are both energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.

Insider & Institutional Ownership

83.1% of Borr Drilling shares are owned by institutional investors. Comparatively, 68.1% of Noble shares are owned by institutional investors. 7.9% of Borr Drilling shares are owned by company insiders. Comparatively, 1.2% of Noble shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Borr Drilling and Noble’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Borr Drilling	4.41%	4.14%	1.29%
Noble	6.60%	2.34%	1.40%

Risk and Volatility

Borr Drilling has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500. Comparatively, Noble has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500.

Valuation & Earnings

This table compares Borr Drilling and Noble”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Borr Drilling	$1.02 billion	1.86	$45.00 million	$0.17	35.32
Noble	$3.29 billion	2.19	$216.72 million	$1.35	33.43

Noble has higher revenue and earnings than Borr Drilling. Noble is trading at a lower price-to-earnings ratio than Borr Drilling, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Borr Drilling and Noble, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Borr Drilling	0	4	0	0	2.00
Noble	1	10	1	0	2.00

Borr Drilling presently has a consensus target price of $4.33, suggesting a potential downside of 27.98%. Noble has a consensus target price of $38.63, suggesting a potential downside of 14.41%. Given Noble’s higher probable upside, analysts clearly believe Noble is more favorable than Borr Drilling.

Summary

Noble beats Borr Drilling on 9 of the 13 factors compared between the two stocks.

About Borr Drilling

Borr Drilling Limited operates as an offshore shallow-water drilling contractor to the oil and gas industry worldwide. The company owns, contracts, and operates jack-up drilling rigs for operations in shallow-water areas, including the provision of related equipment and work crews to conduct oil and gas drilling and workover operations for exploration and production. It serves oil and gas exploration and production companies, such as integrated oil companies, state-owned national oil companies, and independent oil and gas companies. The company was formerly known as Magni Drilling Limited and changed its name to Borr Drilling Limited in December 2016. Borr Drilling Limited was incorporated in 2016 and is based in Hamilton, Bermuda.

About Noble

Noble Corp. Plc engages in the provision offshore drilling services for oil and gas industry. It focuses on a balanced fleet of floating and jackup rigs and the deployment of drilling rigs in oil and gas basins around the world. The company was founded by Lloyd Noble and Art Olson in 1921 and is headquartered in London, the United Kingdom.