Head-To-Head Survey: Borr Drilling (NYSE:BORR) vs. Dawson Geophysical (NASDAQ:DWSN)

Borr Drilling (NYSE:BORR) and Dawson Geophysical (NASDAQ:DWSN) are both small-cap energy companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.

Profitability

This table compares Borr Drilling and Dawson Geophysical’s 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%
Dawson Geophysical	3.49%	19.56%	6.73%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Borr Drilling and Dawson Geophysical, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Borr Drilling	2	1	0	2	2.40
Dawson Geophysical	0	1	0	0	2.00

Borr Drilling presently has a consensus price target of $5.27, indicating a potential upside of 34.87%. Given Borr Drilling’s stronger consensus rating and higher probable upside, analysts plainly believe Borr Drilling is more favorable than Dawson Geophysical.

Valuation & Earnings

This table compares Borr Drilling and Dawson Geophysical”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	1.21	$45.00 million	($0.78)	-5.01
Dawson Geophysical	$75.62 million	1.13	-$1.94 million	$0.12	23.00

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

Volatility & Risk

Borr Drilling has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500. Comparatively, Dawson Geophysical has a beta of 0.01, suggesting that its share price is 99% less volatile than the S&P 500.

Institutional and Insider Ownership

83.1% of Borr Drilling shares are owned by institutional investors. Comparatively, 7.9% of Dawson Geophysical shares are owned by institutional investors. 7.9% of Borr Drilling shares are owned by company insiders. Comparatively, 0.3% of Dawson Geophysical shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Borr Drilling beats Dawson Geophysical on 9 of the 14 factors compared between the two stocks.

About Borr Drilling

Borr Drilling Limited operates as an offshore shallow-water drilling contractor to the oil and gas industry worldwide. The company owns, contracts, and operates jack-up drilling rigs for operations in shallow-water areas, including the provision of related equipment and work crews to conduct oil and gas drilling and workover operations for exploration and production. It serves oil and gas exploration and production companies, such as integrated oil companies, state-owned national oil companies, and independent oil and gas companies. The company was formerly known as Magni Drilling Limited and changed its name to Borr Drilling Limited in December 2016. Borr Drilling Limited was incorporated in 2016 and is based in Hamilton, Bermuda.

About Dawson Geophysical

Dawson Geophysical Company provides onshore seismic data acquisition and processing services in the United States and Canada. The company acquires and processes 2-D, 3-D, and multi-component seismic data for its clients, including oil and gas companies, and independent oil and gas operators, as well as providers of multi-client data libraries and carbon capture sequestration projects. Its seismic crews supply seismic data primarily to companies engaged in the exploration and development of oil and natural gas on land and in land-to-water transition areas, as well as potash mining industry. The company was founded in 1952 and is headquartered in Midland, Texas. Dawson Geophysical Company is a subsidiary of Wilks Brothers, LLC.