Contrasting Saipem (OTCMKTS:SAPMF) & Noble (NYSE:NE)

Noble (NYSE:NE) and Saipem (OTCMKTS:SAPMF) are both mid-cap energy companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, profitability, valuation, earnings and risk.

Volatility and Risk

Noble has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500. Comparatively, Saipem has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500.

Insider & Institutional Ownership

68.1% of Noble shares are held by institutional investors. 1.5% of Noble shares 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 Noble and Saipem’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Noble	6.60%	2.34%	1.40%
Saipem	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current ratings for Noble and Saipem, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Noble	1	10	1	0	2.00
Saipem	0	1	0	2	3.33

Noble currently has a consensus price target of $38.63, suggesting a potential downside of 22.44%. Given Noble’s higher probable upside, equities research analysts clearly believe Noble is more favorable than Saipem.

Earnings and Valuation

This table compares Noble and Saipem”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	2.42	$216.72 million	$1.35	36.89
Saipem	$15.75 billion	0.49	$331.12 million	N/A	N/A

Saipem has higher revenue and earnings than Noble.

Summary

Noble beats Saipem on 9 of the 13 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 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.