Comparing National Oilwell Varco (NOV) and Its Competitors
National Oilwell Varco (NYSE: NOV) is one of 56 public companies in the “Oil Related Services and Equipment” industry, but how does it contrast to its rivals? We will compare National Oilwell Varco to similar businesses based on the strength of its institutional ownership, profitability, dividends, analyst recommendations, valuation, risk and earnings.
Earnings and Valuation
This table compares National Oilwell Varco and its rivals gross revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|National Oilwell Varco||$6.84 billion||-$440.00 million||-5.60|
|National Oilwell Varco Competitors||$2.04 billion||$274.32 million||-38.54|
National Oilwell Varco has higher revenue, but lower earnings than its rivals. National Oilwell Varco 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 is a summary of current ratings and recommmendations for National Oilwell Varco and its rivals, as reported by MarketBeat.com.
|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||2211||2924||125||2.46|
National Oilwell Varco currently has a consensus price target of $38.32, suggesting a potential upside of 13.23%. As a group, “Oil Related Services and Equipment” companies have a potential upside of 30.64%. Given National Oilwell Varco’s rivals stronger consensus rating and higher possible upside, analysts clearly believe National Oilwell Varco has less favorable growth aspects than its rivals.
Volatility and Risk
National Oilwell Varco has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500. Comparatively, National Oilwell Varco’s rivals have a beta of 1.57, meaning that their average share price is 57% more volatile than the S&P 500.
This table compares National Oilwell Varco and its rivals’ 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||-18.49%||-17.11%||-6.01%|
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 rivals as a dividend stock, given its lower dividend yield and higher payout ratio.
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. 0.2% of National Oilwell Varco shares are owned by insiders. Comparatively, 11.9% of shares of all “Oil Related Services and Equipment” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
National Oilwell Varco rivals 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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