Diamond Offshore Drilling (NYSE: DO) is one of 18 public companies in the “Oil & Gas Drilling” industry, but how does it contrast to its rivals? We will compare Diamond Offshore Drilling to related businesses based on the strength of its institutional ownership, analyst recommendations, earnings, valuation, risk, dividends and profitability.

Volatility & Risk

Diamond Offshore Drilling has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500. Comparatively, Diamond Offshore Drilling’s rivals have a beta of 1.89, indicating that their average share price is 89% more volatile than the S&P 500.

Profitability

This table compares Diamond Offshore Drilling and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Diamond Offshore Drilling 11.19% 5.77% 3.42%
Diamond Offshore Drilling Competitors -24.25% -8.95% -2.85%

Insider & Institutional Ownership

74.8% of shares of all “Oil & Gas Drilling” companies are held by institutional investors. 0.0% of Diamond Offshore Drilling shares are held by company insiders. Comparatively, 2.2% of shares of all “Oil & Gas Drilling” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings for Diamond Offshore Drilling and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Diamond Offshore Drilling 8 13 3 0 1.79
Diamond Offshore Drilling Competitors 494 1535 1243 57 2.26

Diamond Offshore Drilling currently has a consensus price target of $14.46, suggesting a potential downside of 16.48%. As a group, “Oil & Gas Drilling” companies have a potential upside of 22.03%. Given Diamond Offshore Drilling’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Diamond Offshore Drilling has less favorable growth aspects than its rivals.

Earnings & Valuation

This table compares Diamond Offshore Drilling and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Diamond Offshore Drilling $1.48 billion $660.47 million 13.96
Diamond Offshore Drilling Competitors $1.42 billion $540.19 million -11.42

Diamond Offshore Drilling has higher revenue and earnings than its rivals. Diamond Offshore Drilling 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.

Summary

Diamond Offshore Drilling rivals beat Diamond Offshore Drilling on 7 of the 13 factors compared.

About Diamond Offshore Drilling

Diamond Offshore Drilling, Inc. provides contract drilling services to the energy industry. As of December 31, 2016, the Company had a fleet of 24 offshore drilling rigs. As of December 31, 2016, its fleet consisted of four drillships, 19 semisubmersible rigs and one jack-up rig. Its fleet enables it to offer a range of services, primarily in the floater market, including ultra-deepwater, deepwater and mid-water. The principal markets for its offshore contract drilling services are the Gulf of Mexico, including the United States and Mexico; South America, principally offshore Brazil, and Trinidad and Tobago; Australia and Southeast Asia, including Malaysia, Indonesia and Vietnam; Europe, principally offshore the United Kingdom and Norway; East and West Africa; the Mediterranean, and the Middle East. The Company provides offshore drilling services to a customer base that includes independent oil and gas companies, and government-owned oil companies.

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