SBM Offshore (OTCMKTS:SBFFY) & Helmerich & Payne (NYSE:HP) Head to Head Review

SBM Offshore (OTCMKTS:SBFFY) and Helmerich & Payne (NYSE:HP) are both energy companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, risk, profitability and earnings.

Dividends

SBM Offshore pays an annual dividend of $0.42 per share and has a dividend yield of 1.1%. Helmerich & Payne pays an annual dividend of $1.00 per share and has a dividend yield of 2.3%. SBM Offshore pays out 37.0% of its earnings in the form of a dividend. Helmerich & Payne pays out -70.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Helmerich & Payne is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares SBM Offshore and Helmerich & Payne”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SBM Offshore	N/A	N/A	N/A	$1.13	34.83
Helmerich & Payne	$4.00 billion	1.07	-$163.70 million	($1.41)	-30.24

SBM Offshore has higher earnings, but lower revenue than Helmerich & Payne. Helmerich & Payne is trading at a lower price-to-earnings ratio than SBM Offshore, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and target prices for SBM Offshore and Helmerich & Payne, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SBM Offshore	0	1	0	0	2.00
Helmerich & Payne	2	4	5	0	2.27

Helmerich & Payne has a consensus target price of $40.50, suggesting a potential downside of 5.01%. Given Helmerich & Payne’s stronger consensus rating and higher probable upside, analysts clearly believe Helmerich & Payne is more favorable than SBM Offshore.

Profitability

This table compares SBM Offshore and Helmerich & Payne’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SBM Offshore	N/A	N/A	N/A
Helmerich & Payne	-3.43%	-2.35%	-0.99%

Insider and Institutional Ownership

96.1% of Helmerich & Payne shares are held by institutional investors. 4.4% of Helmerich & Payne shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Helmerich & Payne beats SBM Offshore on 8 of the 13 factors compared between the two stocks.

About SBM Offshore

SBM Offshore N.V. provides floating production solutions to the offshore energy industry worldwide. It operates in two segments, Lease and Operate, and Turnkey. It engages in the design, supply, installation, operation, lease, and life extension of floating production storage and offloading (FPSO) vessels, as well as semi-submersibles, tension leg floaters, turret mooring systems, floating offshore wind, and brownfield and offshore loading terminals. The company also provides catenary anchor leg mooring (CALM) or single point mooring (SPM) terminals; and solutions for flexible flowline and subsea structure installation works. It operates a fleet of 15 FPSOs and 1 semi-submersible unit. The company was formerly known as IHC Caland and changed its name to SBM Offshore N.V. in 2005. SBM Offshore N.V. was founded in 1862 and is headquartered in Schiphol, the Netherlands.

About Helmerich & Payne

Founded in 1920, Helmerich & Payne, Inc. (H&P) (NYSE: HP) is committed to delivering industry leading levels of drilling productivity and reliability. H&P operates with the highest level of integrity, safety and innovation to deliver superior results for its customers and returns for shareholders. Through its subsidiaries, the Company designs, fabricates and operates high-performance drilling rigs in conventional and unconventional plays around the world. H&P also develops and implements advanced automation, directional drilling and survey management technologies. H&P’s fleet includes 299 land rigs in the U.S., 31 international land rigs and eight offshore platform rigs.