WallStSmart

Seadrill Limited (SDRL)vsValaris Ltd (VAL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Valaris Ltd generates 72% more annual revenue ($2.37B vs $1.38B). VAL leads profitability with a 41.5% profit margin vs -5.6%. VAL earns a higher WallStSmart Score of 62/100 (C+).

SDRL

Buy

50

out of 100

Grade: C-

Growth: 8.7Profit: 3.5Value: 5.3Quality: 7.0
Piotroski: 3/9Altman Z: 2.21

VAL

Buy

62

out of 100

Grade: C+

Growth: 6.7Profit: 8.0Value: 5.7Quality: 5.8
Piotroski: 3/9Altman Z: 2.19
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SDRLUndervalued (+6.9%)

Margin of Safety

+6.9%

Fair Value

$46.21

Current Price

$48.32

$2.11 discount

UndervaluedFair: $46.21Overvalued
VALSignificantly Overvalued (-51.7%)

Margin of Safety

-51.7%

Fair Value

$58.30

Current Price

$92.80

$34.50 premium

UndervaluedFair: $58.30Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SDRL4 strengths · Avg: 9.3/10
Price/BookValuation
1.1x10/10

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

Revenue GrowthGrowth
26.3%8/10

Revenue surging 26.3% year-over-year

VAL5 strengths · Avg: 9.6/10
P/E RatioValuation
7.4x10/10

Attractively priced relative to earnings

Return on EquityProfitability
36.2%10/10

Every $100 of equity generates 36 in profit

Profit MarginProfitability
41.5%10/10

Keeps 42 of every $100 in revenue as profit

EPS GrowthGrowth
446.6%10/10

Earnings expanding 446.6% YoY

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Areas to Watch

SDRL4 concerns · Avg: 2.0/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Return on EquityProfitability
-2.7%2/10

ROE of -2.7% — below average capital efficiency

Free Cash FlowQuality
$-85.00M2/10

Negative free cash flow — burning cash

Profit MarginProfitability
-5.6%1/10

Currently unprofitable

VAL3 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-8.0%2/10

Revenue declined 8.0%

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. Revenue growth of 26.3% demonstrates continued momentum.

Bull Case : VAL

The strongest argument for VAL centers on P/E Ratio, Return on Equity, Profit Margin. Profitability is solid with margins at 41.5% and operating margin at 10.5%.

Bear Case : SDRL

The primary concerns for SDRL are Piotroski F-Score, Return on Equity, Free Cash Flow.

Bear Case : VAL

The primary concerns for VAL are Piotroski F-Score, Revenue Growth, Free Cash Flow.

Key Dynamics to Monitor

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

SDRL carries more volatility with a beta of 1.48 — expect wider price swings.

SDRL is growing revenue faster at 26.3% — sustainability is the question.

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

Bottom Line

VAL scores higher overall (62/100 vs 50/100), backed by strong 41.5% 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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