Seadrill (NYSE:SDRL – Get Free Report) and Tetra Technologies (NYSE:TTI – Get Free Report) are both energy companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, earnings, risk and profitability.
Profitability
This table compares Seadrill and Tetra Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Seadrill | 0.07% | 0.64% | 0.46% |
| Tetra Technologies | 0.97% | 9.11% | 4.14% |
Valuation & Earnings
This table compares Seadrill and Tetra Technologies”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Seadrill | $1.44 billion | 2.06 | -$77.00 million | $0.03 | 1,579.67 |
| Tetra Technologies | $630.93 million | 1.69 | $3.01 million | $0.04 | 179.75 |
Tetra Technologies has lower revenue, but higher earnings than Seadrill. Tetra Technologies is trading at a lower price-to-earnings ratio than Seadrill, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Seadrill has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500. Comparatively, Tetra Technologies has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500.
Insider & Institutional Ownership
95.7% of Seadrill shares are held by institutional investors. Comparatively, 70.2% of Tetra Technologies shares are held by institutional investors. 0.5% of Seadrill shares are held by insiders. Comparatively, 6.3% of Tetra Technologies shares are held 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.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Seadrill and Tetra Technologies, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Seadrill | 1 | 2 | 3 | 3 | 2.89 |
| Tetra Technologies | 0 | 2 | 3 | 0 | 2.60 |
Seadrill presently has a consensus price target of $55.00, suggesting a potential upside of 16.06%. Tetra Technologies has a consensus price target of $12.83, suggesting a potential upside of 78.49%. Given Tetra Technologies’ higher possible upside, analysts clearly believe Tetra Technologies is more favorable than Seadrill.
Summary
Tetra Technologies beats Seadrill on 8 of the 14 factors compared between the two stocks.
About Seadrill
Seadrill Ltd. engages in the provision of offshore drilling services to the oil and gas industry. It operates through the following segments: Floaters, Jack-up rigs, and Other. The Floaters segment encompasses drilling, completion, and maintenance of offshore exploration and production wells. the Jack-up Rigs segment includes drilling contracts relate to jack-up rigs for operations in harsh and benign environments in shallow water. The Other segment represents management services to third parties and related parties. The company was founded on May 10, 2005 and is headquartered in Hamilton, Bermuda.
About Tetra Technologies
TETRA Technologies, Inc., together with its subsidiaries, operates as an energy services and solutions company. It operates through two segments, Completion Fluids & Products Division and Water & Flowback Services. The Completion Fluids & Products segment manufactures and markets clear brine fluids, additives, and associated products and services to the oil and gas industry for use in well drilling, completion, and workover operations in the United States, as well as in Latin America, Europe, Asia, the Middle East, and Africa. This segment also markets liquid and dry calcium chloride products; and TETRA PureFlow ultra-pure zinc bromide to battery technology companies. The Water & Flowback Services segment provides water management services for onshore oil and gas operators. This segment also offers frac flowback, production well testing, and other associated services in oil and gas producing regions in the United States, as well as in various basins in Latin America, Africa, Europe, and the Middle East. TETRA Technologies, Inc. was incorporated in 1981 and is headquartered in The Woodlands, Texas.
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