Rowan Companies PLC (NYSE: RDC) is one of 17 public companies in the “Oil & Gas Drilling” industry, but how does it contrast to its competitors? We will compare Rowan Companies PLC to related businesses based on the strength of its valuation, institutional ownership, profitability, analyst recommendations, earnings, risk and dividends.

Analyst Ratings

This is a summary of recent recommendations for Rowan Companies PLC and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rowan Companies PLC 2 13 5 0 2.15
Rowan Companies PLC Competitors 510 1576 1278 59 2.26

Rowan Companies PLC currently has a consensus price target of $16.50, suggesting a potential upside of 43.73%. As a group, “Oil & Gas Drilling” companies have a potential upside of 34.62%. Given Rowan Companies PLC’s higher probable upside, equities analysts plainly believe Rowan Companies PLC is more favorable than its competitors.

Valuation & Earnings

This table compares Rowan Companies PLC and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Rowan Companies PLC $1.43 billion $627.20 million -37.03
Rowan Companies PLC Competitors $1.42 billion $539.80 million -6.12

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

Insider and Institutional Ownership

74.9% of shares of all “Oil & Gas Drilling” companies are held by institutional investors. 0.8% of Rowan Companies PLC shares are held by insiders. Comparatively, 2.2% of shares of all “Oil & Gas Drilling” 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 Rowan Companies PLC and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rowan Companies PLC -2.62% 0.51% 0.31%
Rowan Companies PLC Competitors -15.95% -7.74% -2.32%

Risk & Volatility

Rowan Companies PLC has a beta of 1.8, suggesting that its share price is 80% more volatile than the S&P 500. Comparatively, Rowan Companies PLC’s competitors have a beta of 1.83, suggesting that their average share price is 83% more volatile than the S&P 500.

Summary

Rowan Companies PLC beats its competitors on 7 of the 13 factors compared.

About Rowan Companies PLC

Rowan Companies plc is a provider of offshore contract drilling services to the international oil and gas industry. The Company operates through two segments: deepwater and jack-ups. Its deepwater segment consists of drillship operations. As of December 31, 2016, the Company’s fleet consisted of 29 mobile offshore drilling units, including 25 self-elevating jack-up rigs and four ultra-deepwater drillships. The Company’s fleet operates across the world, including the United States Gulf of Mexico (US GOM), the United Kingdom and Norwegian sectors of the North Sea, the Middle East and Trinidad. As of February 14, 2017, the Company’s drilling fleet consisted of four ultra-deepwater drillships; 19 high-specification cantilever jack-up rigs, and six premium cantilever jack-up rigs. Its jack-ups are capable of drilling wells to maximum depths ranging from 25,000 to 40,000 feet and in maximum water depths ranging from 300 to 550 feet, depending on rig size, location and outfitting.

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