Valaris (OTCMKTS: VALPQ) is one of 30 publicly-traded companies in the “Drilling oil & gas wells” industry, but how does it contrast to its peers? We will compare Valaris to similar companies based on the strength of its dividends, earnings, risk, valuation, profitability, analyst recommendations and institutional ownership.

Volatility & Risk

Valaris has a beta of 2.54, suggesting that its stock price is 154% more volatile than the S&P 500. Comparatively, Valaris’ peers have a beta of 2.56, suggesting that their average stock price is 156% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Valaris and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Valaris 1 0 0 0 1.00
Valaris Competitors 878 2320 1931 78 2.23

Valaris currently has a consensus price target of $0.06, indicating a potential downside of 31.43%. As a group, “Drilling oil & gas wells” companies have a potential upside of 71.01%. Given Valaris’ peers stronger consensus rating and higher probable upside, analysts plainly believe Valaris has less favorable growth aspects than its peers.

Earnings & Valuation

This table compares Valaris and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Valaris $2.05 billion -$198.00 million -0.02
Valaris Competitors $1.10 billion -$283.81 million 0.43

Valaris has higher revenue and earnings than its peers. Valaris is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

62.2% of Valaris shares are held by institutional investors. Comparatively, 55.0% of shares of all “Drilling oil & gas wells” companies are held by institutional investors. 0.5% of Valaris shares are held by insiders. Comparatively, 2.5% of shares of all “Drilling oil & gas wells” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Valaris and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Valaris -237.15% -15.28% -7.57%
Valaris Competitors -93.43% -19.59% -6.98%

Summary

Valaris peers beat Valaris on 9 of the 13 factors compared.

Valaris Company Profile

Valaris plc provides offshore drilling services in various water depths worldwide. It operates a rig fleet of ultra-deepwater drillships, versatile semisubmersibles, and modern shallow-water jackups. The company's offshore fleet includes 16 drillships, 12 semisubmersibles, 54 jackups, and 2 deepwater managed units. The company was formerly known as Ensco Rowan plc and changed its name to Valaris plc in July 2019. Valaris plc was incorporated in 2009 and is based in London, the United Kingdom. On August 19, 2020, Valaris plc, along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas.

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