Atwood Oceanics (NYSE: ATW) and Seadrill Limited (NYSE:SDRL) are both small-cap oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, dividends, analyst recommendations, valuation and earnings.

Risk and Volatility

Atwood Oceanics has a beta of 2.37, meaning that its share price is 137% more volatile than the S&P 500. Comparatively, Seadrill Limited has a beta of 2.72, meaning that its share price is 172% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Atwood Oceanics and Seadrill Limited, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Atwood Oceanics 3 14 4 0 2.05
Seadrill Limited 1 0 0 0 1.00

Atwood Oceanics currently has a consensus target price of $11.64, indicating a potential upside of 42.83%. Given Atwood Oceanics’ stronger consensus rating and higher probable upside, research analysts plainly believe Atwood Oceanics is more favorable than Seadrill Limited.

Institutional and Insider Ownership

92.0% of Atwood Oceanics shares are held by institutional investors. Comparatively, 21.9% of Seadrill Limited shares are held by institutional investors. 1.2% of Atwood Oceanics shares are held 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.

Earnings & Valuation

This table compares Atwood Oceanics and Seadrill Limited’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Atwood Oceanics $605.28 million 1.08 $296.89 million ($0.20) -40.75
Seadrill Limited $2.37 billion 0.07 $1.15 billion ($1.18) -0.28

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

Profitability

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

Net Margins Return on Equity Return on Assets
Atwood Oceanics -3.06% 2.25% 1.59%
Seadrill Limited -23.55% 2.64% 1.23%

Summary

Atwood Oceanics beats Seadrill Limited on 10 of the 14 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 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.

Receive News & Ratings for Atwood Oceanics Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Atwood Oceanics Inc. and related companies with Analyst Ratings Network's FREE daily email newsletter.