Atwood Oceanics (NYSE: ATW) and ENSCO PLC (NYSE:ESV) are both small-cap oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, profitabiliy, institutional ownership and earnings.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Atwood Oceanics and ENSCO PLC, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Atwood Oceanics 3 15 6 0 2.13
ENSCO PLC 3 8 11 0 2.36

Atwood Oceanics presently has a consensus price target of $11.91, indicating a potential upside of 32.16%. ENSCO PLC has a consensus price target of $10.82, indicating a potential upside of 89.55%. Given ENSCO PLC’s stronger consensus rating and higher possible upside, analysts clearly believe ENSCO PLC is more favorable than Atwood Oceanics.

Institutional and Insider Ownership

91.7% of Atwood Oceanics shares are owned by institutional investors. Comparatively, 91.8% of ENSCO PLC shares are owned by institutional investors. 1.2% of Atwood Oceanics shares are owned by company insiders. Comparatively, 0.6% of ENSCO PLC shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Atwood Oceanics and ENSCO PLC’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Atwood Oceanics $711.29 million 1.02 $376.19 million $1.38 6.53
ENSCO PLC $2.43 billion 0.71 $1.10 billion $2.36 2.42

ENSCO PLC has higher revenue and earnings than Atwood Oceanics. ENSCO PLC is trading at a lower price-to-earnings ratio than Atwood Oceanics, indicating that it is currently the more affordable of the two stocks.

Dividends

ENSCO PLC pays an annual dividend of $0.04 per share and has a dividend yield of 0.7%. Atwood Oceanics does not pay a dividend. ENSCO PLC pays out 1.7% of its earnings in the form of a dividend.

Volatility & Risk

Atwood Oceanics has a beta of 2.31, meaning that its stock price is 131% more volatile than the S&P 500. Comparatively, ENSCO PLC has a beta of 1.64, meaning that its stock price is 64% more volatile than the S&P 500.

Profitability

This table compares Atwood Oceanics and ENSCO PLC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Atwood Oceanics 11.40% 4.35% 3.05%
ENSCO PLC 28.32% 3.07% 1.78%

Summary

ENSCO PLC beats Atwood Oceanics on 9 of the 16 factors compared between the two stocks.

About Atwood Oceanics

Atwood Oceanics, Inc. is an offshore drilling company engaged in the drilling and completion of exploration and development wells for the global oil and gas industry. The Company owns various types of drilling rigs, such as Ultra-Deepwater Rigs, Deepwater Semisubmersibles and Jackups. Its Ultra-deepwater Rigs and Deepwater Semisubmersibles include Atwood Achiever, Atwood Archer, Atwood Admiral, Atwood Advantage, Atwood Condor, Atwood Eagle and Atwood Osprey. Its Jackup Rigs included Atwood Mako, Atwood Manta, Atwood Aurora, Atwood Beacon and Atwood Orca. The Atwood Mako and Atwood Manta, both approximately 400-foot water depth Pacific Class jackup rigs, are operating offshore Vietnam and offshore Thailand. The Atwood Aurora, an approximately 350-foot water depth jackup, is operating offshore West Africa. The Atwood Beacon, an approximately 400-foot water depth jackup, is operating in the Mediterranean Sea.

About ENSCO PLC

Ensco plc is an offshore contract drilling company. The Company provides offshore contract drilling services to the international oil and gas industry. Its segments include Floaters, Jackups and Other. The Floaters segment includes its drillships and semisubmersible rigs, and provides contract drilling. Other consists of management services on rigs owned by third parties. The Floaters and the Jackups segments provide contract drilling. It owned and operated an offshore drilling rig fleet of 57 rigs, including two rigs under construction, with drilling operations around the world, as of December 31, 2016. As of December 31, 2016, its rig fleet included eight drill ships, 10 dynamically positioned semisubmersible rigs, three moored semisubmersible rigs and 38 jackup rigs. As of December 31, 2016, of its 59 rigs, 25 were located in the Middle East, Africa and Asia Pacific, 16 were located in North and South America (including Brazil) and 18 were located in Europe and the Mediterranean.

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