Review of Valaris (NYSE: VAL) and Pacific Drilling (OTCMKTS: PACDQ)


Pacific Drilling (OTCMKTS:PACDQ – Get Rating) and Valaris (NYSE:VAL – Get Rating) are both oil/energy companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, valuation, earnings, dividends, institutional ownership, risk and profitability.

Analyst Recommendations

This is a breakdown of recent Pacific Drilling and Valaris ratings, as provided by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Pacific Drilling 0 0 0 0 N / A
Valaris 0 0 0 0 N / A

Valaris has a consensus target price of $80.00, indicating a potential upside of 58.32%. Given Valaris’ possible higher upside, analysts clearly believe that Valaris is more favorable than Pacific Drilling.

Valuation and benefits

This chart compares revenue, earnings per share (EPS), and valuation of Pacific Drilling and Valaris.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Pacific Drilling $319.72 million 0.00 -$525.16 million N / A N / A
Valaris $1.23 billion 3.08 -$4.50 billion N / A N / A

Pacific Drilling has higher profits, but lower revenues than Valaris.

Profitability

This table compares the net margins, return on equity and return on assets of Pacific Drilling and Valaris.

Net margins Return on equity return on assets
Pacific Drilling -164.67% -23.08% -9.18%
Valaris -291.76% -344.10% -138.77%

Insider and Institutional Ownership

80.5% of Valaris shares are held by institutional investors. 0.1% of Valaris shares are held by insiders. Strong institutional ownership indicates that large fund managers, endowments, and hedge funds believe a company will outperform the market over the long term.

Summary

Valaris beats Pacific Drilling on 5 of the 9 factors compared between the two stocks.

Pacific Drilling Company Profile (Get a rating)

Pacific Drilling SA, together with its subsidiaries, operates as an offshore drilling contractor in the United States, Nigeria and internationally. It provides offshore drilling services to the oil and natural gas industry. The company contracts its fleet of drilling rigs to drill wells for its customers. It has a fleet of seven drillships. Pacific Drilling SA was founded in 2006 and is based in Houston, Texas. On October 30, 2020, Pacific Drilling SA, together with its affiliates, filed a voluntary Chapter 11 reorganization petition with the U.S. Bankruptcy Court for the Southern District of Texas.

Valaris Company Profile (Get a rating)

Valaris Limited provides offshore contract drilling services to the oil and gas industry in Bermuda and overseas. The company has an offshore drilling rig fleet of 56 rigs, including 11 drillships, 4 dynamically positioned semi-submersible rigs, 1 moored semi-submersible rig and 40 jack-up rigs. It serves international, public and independent oil and gas companies in the Gulf of Mexico, North Sea, Middle East, West Africa, Australia and Southeast Asia. The company was incorporated in 2009 and is based in Hamilton, Bermuda.



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