Seadrill (NYSE:SDRL – Get Free Report) and Geospace Technologies (NASDAQ:GEOS – Get Free Report) are both energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, dividends, risk, analyst recommendations and institutional ownership.
Profitability
This table compares Seadrill and Geospace Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Seadrill | 0.07% | 0.64% | 0.46% |
| Geospace Technologies | -43.10% | -35.80% | -28.30% |
Insider & Institutional Ownership
95.7% of Seadrill shares are held by institutional investors. Comparatively, 57.2% of Geospace Technologies shares are held by institutional investors. 0.5% of Seadrill shares are held by insiders. Comparatively, 3.0% of Geospace Technologies shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Volatility & Risk
Seadrill has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500. Comparatively, Geospace Technologies has a beta of 0.13, indicating that its share price is 87% less volatile than the S&P 500.
Earnings and Valuation
This table compares Seadrill and Geospace Technologies”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Seadrill | $1.44 billion | 2.26 | -$77.00 million | $0.03 | 1,728.07 |
| Geospace Technologies | $110.80 million | 0.51 | -$9.72 million | ($3.08) | -1.43 |
Geospace Technologies has lower revenue, but higher earnings than Seadrill. Geospace Technologies is trading at a lower price-to-earnings ratio than Seadrill, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Seadrill and Geospace Technologies, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Seadrill | 0 | 3 | 3 | 3 | 3.00 |
| Geospace Technologies | 1 | 0 | 0 | 0 | 1.00 |
Seadrill presently has a consensus target price of $59.40, suggesting a potential upside of 14.58%. Given Seadrill’s stronger consensus rating and higher possible upside, equities analysts clearly believe Seadrill is more favorable than Geospace Technologies.
Summary
Seadrill beats Geospace Technologies on 12 of the 14 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 Geospace Technologies
Geospace Technologies Corporation designs and manufactures instruments and equipment used in the oil and gas industry to acquire seismic data in order to locate, characterize, and monitor hydrocarbon producing reservoirs. The company operates through three segments: Oil and Gas Markets, Adjacent Markets, and Emerging Markets. The Oil and Gas Markets segment offers wireless seismic data acquisition systems and reservoir characterization products and services, as well as traditional seismic exploration products, such as geophones, hydrophones, leader wires, connectors, cables, marine streamer retrieval and steering devices, and other seismic products. The Adjacent Markets segment provides industrial products, including imaging equipment, water meter products, remote shut-off valves, and Internet of Things platform, as well as seismic sensors for vibration monitoring and geotechnical applications, such as mine safety and earthquake detection applications; and electronic pre-press products that employ direct thermal imaging, direct-to-screen printing systems, and digital inkjet printing technologies targeted at the commercial and industrial graphics, textile, and flexographic printing industries. The Emerging Markets segment designs and sells products used for border and perimeter security surveillance, cross-border tunneling detection, and other products targeted at movement monitoring, intrusion detection, and situational awareness. This segment serves various agencies of the United States government, including the Department of Defense, Department of Energy, Department of Homeland Security, and other agencies. The company operates in Asia, Canada, Europe, South America, the United States, and internationally. Geospace Technologies Corporation was founded in 1980 and is headquartered in Houston, Texas.
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