Critical Comparison: Rowan Companies PLC (RDC) and The Competition
Rowan Companies PLC (NYSE: RDC) is one of 18 public companies in the “Oil & Gas Drilling” industry, but how does it contrast to its peers? We will compare Rowan Companies PLC to similar companies based on the strength of its valuation, earnings, analyst recommendations, institutional ownership, profitability, dividends and risk.
This table compares Rowan Companies PLC and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Rowan Companies PLC||-2.62%||0.51%||0.31%|
|Rowan Companies PLC Competitors||-18.41%||-8.37%||-2.62%|
Insider & Institutional Ownership
74.9% of shares of all “Oil & Gas Drilling” companies are owned by institutional investors. 0.8% of Rowan Companies PLC shares are owned by company insiders. Comparatively, 2.2% of shares of all “Oil & Gas Drilling” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This is a summary of current ratings and recommmendations for Rowan Companies PLC and its peers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Rowan Companies PLC||2||12||6||0||2.20|
|Rowan Companies PLC Competitors||493||1522||1237||57||2.26|
Rowan Companies PLC presently has a consensus target price of $16.11, indicating a potential upside of 22.95%. As a group, “Oil & Gas Drilling” companies have a potential upside of 23.86%. Given Rowan Companies PLC’s peers stronger consensus rating and higher probable upside, analysts plainly believe Rowan Companies PLC has less favorable growth aspects than its peers.
Volatility & Risk
Rowan Companies PLC has a beta of 1.88, suggesting that its stock price is 88% more volatile than the S&P 500. Comparatively, Rowan Companies PLC’s peers have a beta of 1.89, suggesting that their average stock price is 89% more volatile than the S&P 500.
Valuation and Earnings
This table compares Rowan Companies PLC and its peers top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Rowan Companies PLC||$1.43 billion||$627.20 million||-42.26|
|Rowan Companies PLC Competitors||$1.42 billion||$540.19 million||-6.89|
Rowan Companies PLC has higher revenue and earnings than its peers. Rowan Companies PLC is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Rowan Companies PLC peers beat Rowan Companies PLC on 7 of the 13 factors compared.
About Rowan Companies PLC
Rowan Companies plc is a provider of offshore contract drilling services to the international oil and gas industry. The Company operates through two segments: deepwater and jack-ups. Its deepwater segment consists of drillship operations. As of December 31, 2016, the Company’s fleet consisted of 29 mobile offshore drilling units, including 25 self-elevating jack-up rigs and four ultra-deepwater drillships. The Company’s fleet operates across the world, including the United States Gulf of Mexico (US GOM), the United Kingdom and Norwegian sectors of the North Sea, the Middle East and Trinidad. As of February 14, 2017, the Company’s drilling fleet consisted of four ultra-deepwater drillships; 19 high-specification cantilever jack-up rigs, and six premium cantilever jack-up rigs. Its jack-ups are capable of drilling wells to maximum depths ranging from 25,000 to 40,000 feet and in maximum water depths ranging from 300 to 550 feet, depending on rig size, location and outfitting.
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