WallStSmart

Seadrill Limited (SDRL)vsValaris Ltd (VAL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Valaris Ltd generates 57% more annual revenue ($2.21B vs $1.41B). VAL leads profitability with a 45.4% profit margin vs -5.0%. VAL earns a higher WallStSmart Score of 62/100 (C+).

SDRL

Buy

51

out of 100

Grade: C-

Growth: 8.0Profit: 3.5Value: 5.0Quality: 7.5
Piotroski: 4/9Altman Z: 2.37

VAL

Buy

62

out of 100

Grade: C+

Growth: 6.7Profit: 8.0Value: 6.7Quality: 6.5
Piotroski: 4/9Altman Z: 2.48

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SDRL3 strengths · Avg: 9.7/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

EPS GrowthGrowth
63.1%10/10

Earnings expanding 63.1% YoY

Debt/EquityHealth
0.229/10

Conservative balance sheet, low leverage

VAL5 strengths · Avg: 9.6/10
P/E RatioValuation
6.4x10/10

Attractively priced relative to earnings

Return on EquityProfitability
31.8%10/10

Every $100 of equity generates 32 in profit

Profit MarginProfitability
45.4%10/10

Keeps 45 of every $100 in revenue as profit

EPS GrowthGrowth
446.6%10/10

Earnings expanding 446.6% YoY

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Areas to Watch

SDRL3 concerns · Avg: 1.7/10
Return on EquityProfitability
-0.8%2/10

ROE of -0.8% — below average capital efficiency

Free Cash FlowQuality
$-35.00M2/10

Negative free cash flow — burning cash

Profit MarginProfitability
-5.0%1/10

Currently unprofitable

VAL2 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-25.0%2/10

Revenue declined 25.0%

Free Cash FlowQuality
$-25.90M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : SDRL

The strongest argument for SDRL centers on Price/Book, EPS Growth, Debt/Equity.

Bull Case : VAL

The strongest argument for VAL centers on P/E Ratio, Return on Equity, Profit Margin. Profitability is solid with margins at 45.4% and operating margin at 5.3%.

Bear Case : SDRL

The primary concerns for SDRL are Return on Equity, Free Cash Flow, Profit Margin.

Bear Case : VAL

The primary concerns for VAL are Revenue Growth, Free Cash Flow.

Key Dynamics to Monitor

SDRL profiles as a turnaround stock while VAL is a declining play — different risk/reward profiles.

SDRL carries more volatility with a beta of 1.36 — expect wider price swings.

SDRL is growing revenue faster at 8.8% — sustainability is the question.

VAL generates stronger free cash flow (-26M), providing more financial flexibility.

Bottom Line

VAL scores higher overall (62/100 vs 51/100), backed by strong 45.4% margins. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Seadrill Limited

ENERGY · OIL & GAS DRILLING · USA

Seadrill Limited, an offshore drilling contractor, provides offshore drilling services to the oil and gas industry globally. The company is headquartered in Hamilton, Bermuda.

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Valaris Ltd

ENERGY · OIL & GAS DRILLING · USA

Valaris Limited provides offshore contract drilling services in various water depths for the oil and gas industry globally. The company is headquartered in Hamilton, Bermuda.

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