North Atlantic Drilling (NYSE:NADL) versus Vanguard Natural Resources (VNR) Critical Survey

Vanguard Natural Resources (NASDAQ: VNR) and North Atlantic Drilling (NYSE:NADL) are both small-cap oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Profitability

This table compares Vanguard Natural Resources and North Atlantic Drilling’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vanguard Natural Resources -57.32% N/A -16.70%
North Atlantic Drilling -54.37% -55.80% -6.69%

Analyst Ratings

This is a summary of recent recommendations for Vanguard Natural Resources and North Atlantic Drilling, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vanguard Natural Resources 1 0 0 0 1.00
North Atlantic Drilling 0 0 0 0 N/A

Volatility & Risk

Vanguard Natural Resources has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, North Atlantic Drilling has a beta of 2.59, suggesting that its share price is 159% more volatile than the S&P 500.

Institutional and Insider Ownership

4.0% of Vanguard Natural Resources shares are owned by institutional investors. Comparatively, 5.7% of North Atlantic Drilling shares are owned by institutional investors. 1.3% of Vanguard Natural Resources shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Vanguard Natural Resources and North Atlantic Drilling’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Vanguard Natural Resources N/A N/A N/A ($5.33) -0.04
North Atlantic Drilling N/A N/A N/A ($2.77) -0.40

North Atlantic Drilling is trading at a lower price-to-earnings ratio than Vanguard Natural Resources, indicating that it is currently the more affordable of the two stocks.

Summary

North Atlantic Drilling beats Vanguard Natural Resources on 5 of the 7 factors compared between the two stocks.

About Vanguard Natural Resources

Vanguard Natural Resources, Inc is an independent oil and gas company. The Company is focused on the acquisition and development of oil and natural gas properties in the United States. Through its operating subsidiaries, the Company owns properties, and oil and natural gas reserves primarily located in over 10 operating basins: the Green River Basin in Wyoming; the Permian Basin in West Texas and New Mexico; the Gulf Coast Basin in Texas, Louisiana, Mississippi and Alabama; the Anadarko Basin in Oklahoma and North Texas; the Piceance Basin in Colorado; the Big Horn Basin in Wyoming and Montana; the Arkoma Basin in Arkansas and Oklahoma; the Williston Basin in North Dakota and Montana; the Wind River Basin in Wyoming, and the Powder River Basin in Wyoming.

About North Atlantic Drilling

North Atlantic Drilling Ltd. operates as an offshore drilling contractor in the North Atlantic region. The company provides harsh environment offshore drilling services to the oil and gas industry primarily in Norway, the United Kingdom, and the Russian Federation. As of December 31, 2016, it owned seven offshore drilling rigs, including three semi-submersibles, one ultra-deep water drillship, and three jack-up rigs. The company was founded in 2011 and is headquartered in Hamilton, Bermuda. North Atlantic Drilling Ltd. is a subsidiary of Seadrill Limited.

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