Critical Survey: North Atlantic Drilling (NADL) & Vanguard Natural Resources (VNR)
North Atlantic Drilling (NYSE: NADL) and Vanguard Natural Resources (NASDAQ:VNR) are both oils/energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, profitability, risk, analyst recommendations, valuation and dividends.
Valuation & Earnings
This table compares North Atlantic Drilling and Vanguard Natural Resources’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|North Atlantic Drilling||$343.90 million||0.08||$157.90 million||($7.96)||-0.14|
|Vanguard Natural Resources||N/A||N/A||N/A||($9.14)||-0.02|
North Atlantic Drilling has higher revenue and earnings than Vanguard Natural Resources. North Atlantic Drilling is trading at a lower price-to-earnings ratio than Vanguard Natural Resources, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
North Atlantic Drilling has a beta of 3, indicating that its stock price is 200% more volatile than the S&P 500. Comparatively, Vanguard Natural Resources has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500.
Insider and Institutional Ownership
5.7% of North Atlantic Drilling shares are held by institutional investors. Comparatively, 4.0% of Vanguard Natural Resources shares are held by institutional investors. 1.3% of Vanguard Natural Resources shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This table compares North Atlantic Drilling and Vanguard Natural Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|North Atlantic Drilling||-54.37%||-55.80%||-6.69%|
|Vanguard Natural Resources||-57.32%||N/A||-16.70%|
This is a summary of recent ratings and price targets for North Atlantic Drilling and Vanguard Natural Resources, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|North Atlantic Drilling||0||0||0||0||N/A|
|Vanguard Natural Resources||1||1||0||0||1.50|
North Atlantic Drilling beats Vanguard Natural Resources on 6 of the 8 factors compared between the two stocks.
North Atlantic Drilling Company Profile
North Atlantic Drilling Ltd. operates as an offshore drilling contractor in the North Atlantic region. The company provides harsh environment offshore drilling services to the oil and gas industry primarily in Norway, the United Kingdom, and the Russian Federation. As of December 31, 2016, it owned seven offshore drilling rigs, including three semi-submersibles, one ultra-deep water drillship, and three jack-up rigs. The company was founded in 2011 and is headquartered in Hamilton, Bermuda. North Atlantic Drilling Ltd. is a subsidiary of Seadrill Limited.
Vanguard Natural Resources Company Profile
Vanguard Natural Resources, Inc is an independent oil and gas company. The Company is focused on the acquisition and development of oil and natural gas properties in the United States. Through its operating subsidiaries, the Company owns properties, and oil and natural gas reserves primarily located in over 10 operating basins: the Green River Basin in Wyoming; the Permian Basin in West Texas and New Mexico; the Gulf Coast Basin in Texas, Louisiana, Mississippi and Alabama; the Anadarko Basin in Oklahoma and North Texas; the Piceance Basin in Colorado; the Big Horn Basin in Wyoming and Montana; the Arkoma Basin in Arkansas and Oklahoma; the Williston Basin in North Dakota and Montana; the Wind River Basin in Wyoming, and the Powder River Basin in Wyoming.
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