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

Insider and Institutional Ownership

74.9% of shares of all “Oil & Gas Drilling” companies are owned by institutional investors. 0.0% of Diamond Offshore Drilling shares are owned by insiders. Comparatively, 2.2% of shares of all “Oil & Gas Drilling” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for Diamond Offshore Drilling and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Diamond Offshore Drilling 8 13 3 0 1.79
Diamond Offshore Drilling Competitors 493 1521 1235 57 2.26

Diamond Offshore Drilling currently has a consensus target price of $14.46, suggesting a potential downside of 5.39%. As a group, “Oil & Gas Drilling” companies have a potential upside of 26.70%. Given Diamond Offshore Drilling’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Diamond Offshore Drilling has less favorable growth aspects than its competitors.

Valuation and Earnings

This table compares Diamond Offshore Drilling and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Diamond Offshore Drilling $1.48 billion $660.47 million 12.32
Diamond Offshore Drilling Competitors $1.42 billion $540.19 million -6.89

Diamond Offshore Drilling has higher revenue and earnings than its competitors. Diamond Offshore Drilling is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Volatility and Risk

Diamond Offshore Drilling has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500. Comparatively, Diamond Offshore Drilling’s competitors have a beta of 1.89, meaning that their average share price is 89% more volatile than the S&P 500.

Profitability

This table compares Diamond Offshore Drilling and its competitors’ 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 -28.89% -11.24% -4.34%

Summary

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

Diamond Offshore Drilling Company Profile

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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