SBM Offshore (OTCMKTS:SBFFY) & Helmerich & Payne (NYSE:HP) Financial Analysis

Helmerich & Payne (NYSE:HP) and SBM Offshore (OTCMKTS:SBFFY) are both energy companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Helmerich & Payne and SBM Offshore, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Helmerich & Payne	2	5	5	0	2.25
SBM Offshore	0	1	0	0	2.00

Helmerich & Payne presently has a consensus price target of $39.80, indicating a potential upside of 7.37%. Given Helmerich & Payne’s stronger consensus rating and higher probable upside, analysts plainly believe Helmerich & Payne is more favorable than SBM Offshore.

Profitability

This table compares Helmerich & Payne and SBM Offshore’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Helmerich & Payne	-3.43%	-2.34%	-0.98%
SBM Offshore	N/A	N/A	N/A

Valuation and Earnings

This table compares Helmerich & Payne and SBM Offshore”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Helmerich & Payne	$3.75 billion	0.99	-$163.70 million	($3.79)	-9.78
SBM Offshore	N/A	N/A	N/A	$1.13	33.81

SBM Offshore has lower revenue, but higher earnings than Helmerich & Payne. Helmerich & Payne is trading at a lower price-to-earnings ratio than SBM Offshore, indicating that it is currently the more affordable of the two stocks.

Dividends

Helmerich & Payne pays an annual dividend of $1.00 per share and has a dividend yield of 2.7%. SBM Offshore pays an annual dividend of $0.42 per share and has a dividend yield of 1.1%. Helmerich & Payne pays out -26.4% of its earnings in the form of a dividend. SBM Offshore pays out 37.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Helmerich & Payne is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

96.1% of Helmerich & Payne shares are owned by institutional investors. 4.4% of Helmerich & Payne shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Helmerich & Payne beats SBM Offshore on 8 of the 13 factors compared between the two stocks.

About Helmerich & Payne

Founded in 1920, Helmerich & Payne, Inc. (H&P) (NYSE: HP) is committed to delivering industry leading levels of drilling productivity and reliability. H&P operates with the highest level of integrity, safety and innovation to deliver superior results for its customers and returns for shareholders. Through its subsidiaries, the Company designs, fabricates and operates high-performance drilling rigs in conventional and unconventional plays around the world. H&P also develops and implements advanced automation, directional drilling and survey management technologies. H&P’s fleet includes 299 land rigs in the U.S., 31 international land rigs and eight offshore platform rigs.

About SBM Offshore

SBM Offshore N.V. provides floating production solutions to the offshore energy industry worldwide. It operates in two segments, Lease and Operate, and Turnkey. It engages in the design, supply, installation, operation, lease, and life extension of floating production storage and offloading (FPSO) vessels, as well as semi-submersibles, tension leg floaters, turret mooring systems, floating offshore wind, and brownfield and offshore loading terminals. The company also provides catenary anchor leg mooring (CALM) or single point mooring (SPM) terminals; and solutions for flexible flowline and subsea structure installation works. It operates a fleet of 15 FPSOs and 1 semi-submersible unit. The company was formerly known as IHC Caland and changed its name to SBM Offshore N.V. in 2005. SBM Offshore N.V. was founded in 1862 and is headquartered in Schiphol, the Netherlands.