Seadrill (NYSE:SDRL – Get Free Report) and DMC Global (NASDAQ:BOOM – Get Free Report) are both energy companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, dividends, valuation, institutional ownership, profitability, risk and analyst recommendations.
Profitability
This table compares Seadrill and DMC Global’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Seadrill | 0.07% | 0.64% | 0.46% |
| DMC Global | -3.37% | -6.84% | -2.57% |
Analyst Ratings
This is a summary of recent recommendations and price targets for Seadrill and DMC Global, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Seadrill | 1 | 1 | 3 | 4 | 3.11 |
| DMC Global | 1 | 2 | 1 | 0 | 2.00 |
Risk and Volatility
Seadrill has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500. Comparatively, DMC Global has a beta of 1.76, suggesting that its share price is 76% more volatile than the S&P 500.
Institutional and Insider Ownership
95.7% of Seadrill shares are held by institutional investors. Comparatively, 77.6% of DMC Global shares are held by institutional investors. 0.5% of Seadrill shares are held by company insiders. Comparatively, 7.1% of DMC Global shares are held 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.
Valuation and Earnings
This table compares Seadrill and DMC Global”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Seadrill | $1.44 billion | 2.03 | -$77.00 million | $0.03 | 1,557.20 |
| DMC Global | $609.84 million | 0.20 | -$13.45 million | ($0.93) | -6.53 |
DMC Global has lower revenue, but higher earnings than Seadrill. DMC Global is trading at a lower price-to-earnings ratio than Seadrill, indicating that it is currently the more affordable of the two stocks.
Summary
Seadrill beats DMC Global on 11 of the 15 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 DMC Global
DMC Global Inc. provides a suite of engineered products and various solutions for the construction, energy, industrial processing, and transportation markets worldwide. The company operates through three segments: Arcadia, DynaEnergetics, and NobelClad. The Arcadia segment manufactures, assembles, and sells architectural building products, including exterior and interior framing systems, curtain walls, windows, doors, and interior partitions; architectural components, architectural framing systems, entrance systems, and sun control products; sliding and glazing systems; and thermally broken steel, aluminum windows and doors, and wood doors and windows. It sells its products through a national in-house sales force for buildings, such as office towers, airports, hotels, education and athletic facilities, health care locations, government buildings, retail centers, mixed use, and multi-family residential buildings. The DynaEnergetics segment designs, manufactures, markets, and sells perforating systems, including initiation systems, shaped charges, detonating cords, gun hardware, and control panels; and perforating systems and associated hardware for the oil and gas industry. It sells its products through direct selling, distributors, and independent sales representatives. The NobelClad segment produces and sells explosion-welded clad metal plates for use in the construction of heavy, corrosion resistant pressure vessels, and heat exchangers for oil and gas, chemical and petrochemical, alternative energy, hydrometallurgy, aluminum production, shipbuilding, rail car manufacturing, power generation, and industrial refrigeration industries. It sells its products through direct sales personnel, program managers, and independent sales representatives. The company was formerly known as Dynamic Materials Corporation and changed its name to DMC Global Inc. in November 2016. DMC Global Inc. was founded in 1965 and is headquartered in Broomfield, Colorado.
Receive News & Ratings for Seadrill Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Seadrill and related companies with MarketBeat.com's FREE daily email newsletter.
