Analyzing Bristow Group (BRS) & McDermott International (MDR)

Bristow Group (NYSE: BRS) and McDermott International (NYSE:MDR) are both energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, analyst recommendations, profitability, institutional ownership, risk, dividends and earnings.

Insider and Institutional Ownership

86.0% of McDermott International shares are held by institutional investors. 10.0% of Bristow Group shares are held by insiders. Comparatively, 1.3% of McDermott International shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

Bristow Group has a beta of 3.09, suggesting that its share price is 209% more volatile than the S&P 500. Comparatively, McDermott International has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Bristow Group and McDermott International, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bristow Group 0 4 1 0 2.20
McDermott International 1 4 3 0 2.25

Bristow Group currently has a consensus price target of $14.75, suggesting a potential downside of 11.04%. McDermott International has a consensus price target of $7.39, suggesting a potential downside of 5.17%. Given McDermott International’s stronger consensus rating and higher probable upside, analysts plainly believe McDermott International is more favorable than Bristow Group.

Dividends

Bristow Group pays an annual dividend of $0.14 per share and has a dividend yield of 0.8%. McDermott International does not pay a dividend. Bristow Group pays out -2.6% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Bristow Group and McDermott International’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bristow Group $1.40 billion 0.42 -$170.53 million ($5.30) -3.13
McDermott International $2.64 billion 0.84 $34.11 million $0.53 14.70

McDermott International has higher revenue and earnings than Bristow Group. Bristow Group is trading at a lower price-to-earnings ratio than McDermott International, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Bristow Group and McDermott International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bristow Group -13.31% -7.08% -2.94%
McDermott International 5.25% 9.56% 4.80%

Summary

McDermott International beats Bristow Group on 12 of the 16 factors compared between the two stocks.

About Bristow Group

Bristow Group Inc. is an industrial aviation services provider and helicopter service provider to the offshore energy industry. The Industrial Aviation Services segment’s operations are conducted primarily through four regions: Europe Caspian, Africa, Americas and Asia Pacific. The Europe Caspian region consists of all its operations and affiliates in Europe and Central Asia, including Norway, the United Kingdom and Turkmenistan. The Africa region consists of all its operations and affiliates on the African continent, including Nigeria, Tanzania and Egypt. The Americas region consists of all its operations and affiliates in North America and South America, including Brazil, Canada, Trinidad and the United States Gulf of Mexico. The Asia Pacific region consists of all its operations and affiliates in Australia and Southeast Asia, including Malaysia and Sakhalin. Additionally, it operates a training unit, Bristow Academy.

About McDermott International

McDermott International, Inc. is a provider of integrated engineering, procurement, construction and installation (EPCI), front-end engineering and design (FEED) and module fabrication services for upstream field developments across the world. The Company delivers fixed and floating production facilities, pipeline installations and subsea systems from concept to commissioning for offshore and subsea oil and gas projects. It operates through three segments: the Americas, Europe and Africa (AEA), the Middle East (MEA) and Asia (ASA). As of December 31, 2016, operated in approximately 20 countries across the Americas, Europe, Africa, the Middle East, Asia and Australia, its integrated resources include a diversified fleet of marine vessels, fabrication facilities and engineering offices. It support its activities with project management and procurement services, while utilizing its fully integrated capabilities in both shallow water and deepwater construction.

Receive News & Ratings for Bristow Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Bristow Group and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply