National Oilwell Varco (NYSE: NOV) is one of 56 publicly-traded companies in the “Oil Related Services and Equipment” industry, but how does it contrast to its competitors? We will compare National Oilwell Varco to related companies based on the strength of its analyst recommendations, valuation, earnings, dividends, profitability, institutional ownership and risk.

Institutional and Insider Ownership

90.3% of National Oilwell Varco shares are owned by institutional investors. Comparatively, 65.8% of shares of all “Oil Related Services and Equipment” companies are owned by institutional investors. 0.6% of National Oilwell Varco shares are owned by company insiders. Comparatively, 11.9% of shares of all “Oil Related Services and Equipment” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

National Oilwell Varco pays an annual dividend of $0.20 per share and has a dividend yield of 0.6%. National Oilwell Varco pays out -3.3% of its earnings in the form of a dividend. As a group, “Oil Related Services and Equipment” companies pay a dividend yield of 2.8% and pay out -46.3% of their earnings in the form of a dividend. National Oilwell Varco lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares National Oilwell Varco and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
National Oilwell Varco -33.24% -2.12% -1.41%
National Oilwell Varco Competitors -19.45% -18.40% -6.55%

Earnings & Valuation

This table compares National Oilwell Varco and its competitors gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
National Oilwell Varco $6.84 billion -$440.00 million -5.76
National Oilwell Varco Competitors $2.00 billion $269.51 million -39.47

National Oilwell Varco has higher revenue, but lower earnings than its competitors. National Oilwell Varco is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Volatility and Risk

National Oilwell Varco has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500. Comparatively, National Oilwell Varco’s competitors have a beta of 1.57, meaning that their average stock price is 57% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for National Oilwell Varco and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
National Oilwell Varco 3 14 6 0 2.13
National Oilwell Varco Competitors 500 2212 2929 125 2.46

National Oilwell Varco presently has a consensus target price of $38.32, suggesting a potential upside of 10.20%. As a group, “Oil Related Services and Equipment” companies have a potential upside of 27.14%. Given National Oilwell Varco’s competitors stronger consensus rating and higher possible upside, analysts plainly believe National Oilwell Varco has less favorable growth aspects than its competitors.

Summary

National Oilwell Varco competitors beat National Oilwell Varco on 10 of the 14 factors compared.

National Oilwell Varco Company Profile

National Oilwell Varco, Inc. is an oilfield equipment manufacturer and technology provider. The Company operates through four segments: Rig Systems, Rig Aftermarket, Wellbore Technologies and Completion & Production Solutions. The Rig Systems segment makes and supports the capital equipment and integrated systems needed to drill oil and gas wells on land and offshore. The Rig Systems segment designs, manufactures and sells land rigs, offshore drilling equipment packages, and drilling rig components. The Rig Aftermarket segment provides aftermarket products and services to support a large installed base of land and offshore rigs, and drilling rig components manufactured by the Company’s Rig Systems segment. The Wellbore Technologies segment designs, manufactures, rents and sells a range of equipment and technologies used to perform drilling operations. The Completion & Production Solutions segment integrates technologies for well completions and oil and gas production.

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