Critical Comparison: Nabors Industries (NBR) & The Competition
Nabors Industries (NYSE: NBR) is one of 18 public companies in the “Oil & Gas Drilling” industry, but how does it weigh in compared to its rivals? We will compare Nabors Industries to related businesses based on the strength of its profitability, earnings, risk, valuation, institutional ownership, dividends and analyst recommendations.
Nabors Industries pays an annual dividend of $0.24 per share and has a dividend yield of 3.1%. Nabors Industries pays out -9.4% of its earnings in the form of a dividend. As a group, “Oil & Gas Drilling” companies pay a dividend yield of 4.5% and pay out -116.7% of their earnings in the form of a dividend. Nabors Industries has increased its dividend for 3 consecutive years. Nabors Industries lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.
Earnings and Valuation
This table compares Nabors Industries and its rivals top-line revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Nabors Industries||$2.25 billion||$535.84 million||-3.06|
|Nabors Industries Competitors||$1.42 billion||$540.19 million||-6.66|
Nabors Industries has higher revenue, but lower earnings than its rivals. Nabors Industries is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
This table compares Nabors Industries and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Nabors Industries Competitors||-18.41%||-8.37%||-2.62%|
Risk & Volatility
Nabors Industries has a beta of 1.64, meaning that its share price is 64% more volatile than the S&P 500. Comparatively, Nabors Industries’ rivals have a beta of 1.89, meaning that their average share price is 89% more volatile than the S&P 500.
Institutional & Insider Ownership
95.7% of Nabors Industries shares are owned by institutional investors. Comparatively, 74.9% of shares of all “Oil & Gas Drilling” companies are owned by institutional investors. 4.1% of Nabors Industries 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 company will outperform the market over the long term.
This is a breakdown of recent ratings and price targets for Nabors Industries and its rivals, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Nabors Industries Competitors||487||1489||1218||57||2.26|
Nabors Industries presently has a consensus target price of $12.68, indicating a potential upside of 62.29%. As a group, “Oil & Gas Drilling” companies have a potential upside of 22.68%. Given Nabors Industries’ stronger consensus rating and higher possible upside, equities analysts plainly believe Nabors Industries is more favorable than its rivals.
Nabors Industries rivals beat Nabors Industries on 8 of the 14 factors compared.
About Nabors Industries
Nabors Industries Ltd. owns and operates a land-based drilling rig fleet. The Company is a provider of offshore platform drilling rigs in the United States and multiple international markets. The Company conducts its Drilling & Rig Services business through four segments: U.S. Drilling, Canada Drilling, International Drilling and Rig Services. The Company provides wellbore placement services, drilling software and performance tools, drilling equipment and various technologies throughout the oil and gas markets. The Company’s Drilling & Rig Services business comprises land-based and offshore drilling rig operations and other rig services, consisting of equipment manufacturing, rig instrumentation and optimization software. The Company is a provider of directional drilling and measurement while drilling (MWD) systems and services. The Company also provides drilling technology and equipment, and well-site services.
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