Borr Drilling (NYSE:BORR) and Select Water Solutions (NYSE:WTTR) Head to Head Review

Borr Drilling (NYSE:BORR) and Select Water Solutions (NYSE:WTTR) are both energy companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Profitability

This table compares Borr Drilling and Select Water Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Borr Drilling	-23.98%	-5.95%	-1.84%
Select Water Solutions	3.28%	4.60%	2.89%

Analyst Ratings

This is a summary of recent ratings for Borr Drilling and Select Water Solutions, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Borr Drilling	2	1	0	2	2.40
Select Water Solutions	0	3	7	0	2.70

Borr Drilling currently has a consensus target price of $5.27, suggesting a potential upside of 53.32%. Select Water Solutions has a consensus target price of $24.43, suggesting a potential upside of 49.13%. Given Borr Drilling’s higher possible upside, equities research analysts clearly believe Borr Drilling is more favorable than Select Water Solutions.

Institutional and Insider Ownership

83.1% of Borr Drilling shares are held by institutional investors. Comparatively, 81.7% of Select Water Solutions shares are held by institutional investors. 7.9% of Borr Drilling shares are held by company insiders. Comparatively, 6.2% of Select Water Solutions shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Borr Drilling and Select Water Solutions”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Borr Drilling	$1.02 billion	1.06	$45.00 million	($0.78)	-4.40
Select Water Solutions	$1.52 billion	1.49	$21.22 million	$0.41	39.95

Borr Drilling has higher earnings, but lower revenue than Select Water Solutions. Borr Drilling is trading at a lower price-to-earnings ratio than Select Water Solutions, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Borr Drilling has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500. Comparatively, Select Water Solutions has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500.

Summary

Select Water Solutions beats Borr Drilling on 9 of the 15 factors compared between the two stocks.

About Borr Drilling

Borr Drilling Limited is an offshore drilling contractor that provides jack-up rigs and related drilling services to oil and gas companies. Its rigs are designed for shallow-water operations, and the company supplies crews and operational support for offshore drilling projects. Founded in 2016, Borr Drilling built its fleet through acquisitions of jack-up rigs from other drilling companies. It serves customers in offshore markets around the world, including regions such as the Middle East, Southeast Asia, West Africa and the North Sea.

About Select Water Solutions

Select Water Solutions, Inc. provides water-management and chemical services to oil and natural gas exploration and production companies. Its services support drilling, completions and ongoing production, with a focus on managing water used in and generated by energy operations. The company’s offerings include water sourcing, transfer, treatment, recycling and disposal, as well as water infrastructure such as pipelines and related facilities. It also supplies specialty chemicals and technical services designed for oilfield operations.