McDermott International (NYSE: MDR) and Bristow Group (NYSE:BRS) are both energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.
Bristow Group pays an annual dividend of $0.14 per share and has a dividend yield of 0.9%. McDermott International does not pay a dividend. Bristow Group pays out -2.6% of its earnings in the form of a dividend.
85.2% of McDermott International shares are held by institutional investors. 1.3% of McDermott International shares are held by company insiders. Comparatively, 10.0% of Bristow Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares McDermott International and Bristow Group’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|McDermott International||$2.64 billion||0.88||$34.11 million||$0.53||15.34|
|Bristow Group||$1.40 billion||0.38||-$170.53 million||($5.30)||-2.86|
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.
This table compares McDermott International and Bristow Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
McDermott International has a beta of 1.58, meaning that its stock price is 58% more volatile than the S&P 500. Comparatively, Bristow Group has a beta of 3.15, meaning that its stock price is 215% more volatile than the S&P 500.
This is a summary of current ratings and price targets for McDermott International and Bristow Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
McDermott International presently has a consensus target price of $7.89, suggesting a potential downside of 2.98%. Bristow Group has a consensus target price of $14.75, suggesting a potential downside of 2.64%. Given Bristow Group’s higher probable upside, analysts clearly believe Bristow Group is more favorable than McDermott International.
McDermott International beats Bristow Group on 11 of the 16 factors compared between the two stocks.
McDermott International Company Profile
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.
Bristow Group Company Profile
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.
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