Contrasting Nabors Industries (NYSE:NBR) & Saipem (OTCMKTS:SAPMF)

Nabors Industries (NYSE:NBR) and Saipem (OTCMKTS:SAPMF) are both energy companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, risk and valuation.

Earnings & Valuation

This table compares Nabors Industries and Saipem”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nabors Industries	$2.97 billion	0.18	-$176.08 million	($15.64)	-2.19
Saipem	$15.75 billion	0.34	$331.16 million	N/A	N/A

Saipem has higher revenue and earnings than Nabors Industries.

Volatility and Risk

Nabors Industries has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500. Comparatively, Saipem has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500.

Institutional & Insider Ownership

81.9% of Nabors Industries shares are held by institutional investors. 5.4% of Nabors Industries shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Nabors Industries and Saipem’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nabors Industries	-3.51%	-38.28%	-4.16%
Saipem	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Nabors Industries and Saipem, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nabors Industries	3	4	1	0	1.75
Saipem	0	0	0	1	4.00

Nabors Industries currently has a consensus target price of $41.63, suggesting a potential upside of 21.57%. Given Nabors Industries’ higher possible upside, analysts clearly believe Nabors Industries is more favorable than Saipem.

Summary

Saipem beats Nabors Industries on 8 of the 13 factors compared between the two stocks.

About Nabors Industries

Nabors Industries Ltd. provides drilling and drilling-related services for land-based and offshore oil and natural gas wells in the United States and internationally. The company operates through four segments: U.S. Drilling, International Drilling, Drilling Solutions, and Rig Technologies. It provides tubular running services, including casing and tubing running, and torque monitoring; managed pressure drilling services; and drilling-bit steering systems and rig instrumentation software. The company also offers drilling systems comprising ROCKit, a directional steering control system; SmartNAV, a collaborative guidance and advisory platform; SmartSLIDE, a directional steering control system; and RigCLOUD, a digital infrastructure to integrate applications to deliver real-time insight into operations across the rig fleet. In addition, it operates a fleet of land-based drilling rigs and marketed platforms rigs; manufactures and sells top drives, catwalks, wrenches, drawworks, and other drilling related equipment, such as robotic systems and downhole tools; and provides aftermarket sales and services for the installed base of its equipment. Nabors Industries Ltd. was founded in 1952 and is based in Hamilton, Bermuda.

About Saipem

Saipem SpA provides energy and infrastructure solutions worldwide. The company operates through Asset Based Services, Offshore Drilling, and Energy Carriers segments. It offers development of subsea fields and pipelaying; installation and lifting of offshore structures; and engineering, implementation, installation, maintenance, modification, and decommissioning activities. The company also engages in onshore engineering and construction, sustainable infrastructures, and robotics and industrialized solutions; and offshore engineering and construction, and wind activities. In addition, the company provides procurement, construction, project management, and engineering integrated services to the oil and gas, civil and marine infrastructure, and environmental markets. Saipem S.p.A. was founded in 1957 and is headquartered in Milan, Italy.