Head-To-Head Analysis: Helmerich & Payne (HP) & Noble (NE)

Helmerich & Payne (NYSE: HP) and Noble (NYSE:NE) are both oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
Helmerich & Payne 20.30% -1.90% -1.27%
Noble -41.76% -4.61% -2.55%

Volatility & Risk

Helmerich & Payne has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500. Comparatively, Noble has a beta of 2.2, indicating that its stock price is 120% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Helmerich & Payne and Noble, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Helmerich & Payne 5 15 6 0 2.04
Noble 4 10 4 0 2.00

Helmerich & Payne currently has a consensus price target of $56.61, indicating a potential downside of 22.95%. Noble has a consensus price target of $4.70, indicating a potential downside of 5.43%. Given Noble’s higher possible upside, analysts clearly believe Noble is more favorable than Helmerich & Payne.

Valuation & Earnings

This table compares Helmerich & Payne and Noble’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Helmerich & Payne $1.80 billion 4.43 -$128.21 million ($1.27) -57.85
Noble $1.24 billion 0.99 -$516.51 million ($1.14) -4.36

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

Dividends

Helmerich & Payne pays an annual dividend of $2.80 per share and has a dividend yield of 3.8%. Noble does not pay a dividend. Helmerich & Payne pays out -220.5% of its earnings in the form of a dividend. Helmerich & Payne has raised its dividend for 45 consecutive years.

Institutional & Insider Ownership

87.8% of Noble shares are held by institutional investors. 4.1% of Helmerich & Payne shares are held by company insiders. Comparatively, 1.0% of Noble shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Helmerich & Payne beats Noble on 12 of the 17 factors compared between the two stocks.

Helmerich & Payne Company Profile

Helmerich & Payne, Inc. is engaged in contract drilling of oil and gas wells for others. The Company operates in the contract drilling industry. The Company’s contract drilling business consists of three segments: U.S. Land, Offshore and International Land. The Company is also engaged in the ownership, development and operation of commercial real estate and the research and development of rotary steerable technology. Its real estate investments are located within Tulsa, Oklahoma, and include a shopping center containing approximately 441,000 leasable square feet, multi-tenant industrial warehouse properties containing approximately one million leasable square feet and approximately 210 acres of undeveloped real estate. The Company provides drilling rigs, equipment, personnel and camps on a contract basis. The Company’s subsidiaries include Helmerich & Payne International Drilling Co. and Helmerich & Payne de Venezuela, C.A.

Noble Company Profile

Noble Corporation plc operates as an offshore drilling contractor for the oil and gas industry worldwide. It provides contract drilling services using mobile offshore drilling units. As of December 31, 2017, the company operated a fleet of 8 drill ships, 6 semisubmersibles, and 14 jack ups. Noble Corporation plc was founded in 1921 and is headquartered in London, the United Kingdom.

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