Noble (NYSE:NE) and Valaris (NYSE:VAL) Financial Survey
by Sarita Garza · The Markets DailyNoble (NYSE:NE – Get Free Report) and Valaris (NYSE:VAL – Get Free Report) are both mid-cap energy companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, institutional ownership, analyst recommendations and risk.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Noble and Valaris, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Noble | 1 | 10 | 1 | 0 | 2.00 |
| Valaris | 1 | 10 | 0 | 0 | 1.91 |
Noble currently has a consensus price target of $39.25, suggesting a potential downside of 21.92%. Valaris has a consensus price target of $61.72, suggesting a potential downside of 38.20%. Given Noble’s stronger consensus rating and higher possible upside, research analysts plainly believe Noble is more favorable than Valaris.
Institutional and Insider Ownership
68.1% of Noble shares are owned by institutional investors. Comparatively, 96.7% of Valaris shares are owned by institutional investors. 1.5% of Noble shares are owned by insiders. Comparatively, 0.7% of Valaris shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Noble and Valaris”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Noble | $3.29 billion | 2.44 | $216.72 million | $1.35 | 37.24 |
| Valaris | $2.37 billion | 2.92 | $982.80 million | $13.99 | 7.14 |
Valaris has lower revenue, but higher earnings than Noble. Valaris is trading at a lower price-to-earnings ratio than Noble, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Noble has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, Valaris has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500.
Profitability
This table compares Noble and Valaris’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Noble | 6.60% | 2.34% | 1.40% |
| Valaris | 41.49% | 12.62% | 6.81% |
Summary
Valaris beats Noble on 8 of the 14 factors compared between the two stocks.
About Noble
Noble Corp. Plc engages in the provision offshore drilling services for oil and gas industry. It focuses on a balanced fleet of floating and jackup rigs and the deployment of drilling rigs in oil and gas basins around the world. The company was founded by Lloyd Noble and Art Olson in 1921 and is headquartered in London, the United Kingdom.
About Valaris
Valaris Limited, together with its subsidiaries, provides offshore contract drilling services Gulf of Mexico, South America, North Sea, the Middle East, Africa, and the Asia Pacific. The company operates through four segments: Floaters, Jackups, ARO, and Other. It owns an offshore drilling rig fleet, which include drillships, dynamically positioned semisubmersible rigs, moored semisubmersible rig, and jackup rigs. It serves international, government-owned, and independent oil and gas. Valaris Limited was founded in 1975 and is based in Hamilton, Bermuda.