Head-To-Head Survey: Subsea 7 (SUBCY) versus Its Competitors

Subsea 7 (OTC:SUBCY) is one of 34 public companies in the “Oil & gas field services, not elsewhere classified” industry, but how does it contrast to its rivals? We will compare Subsea 7 to related businesses based on the strength of its valuation, analyst recommendations, earnings, profitability, dividends, risk and institutional ownership.

Volatility and Risk

Subsea 7 has a beta of 1.71, suggesting that its stock price is 71% more volatile than the S&P 500. Comparatively, Subsea 7’s rivals have a beta of 2.25, suggesting that their average stock price is 125% more volatile than the S&P 500.

Profitability

This table compares Subsea 7 and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Subsea 7	2.46%	3.72%	1.98%
Subsea 7 Competitors	-2.53%	-111.39%	-1.88%

Earnings & Valuation

This table compares Subsea 7 and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Subsea 7	$5.97 billion	$15.40 million	29.81
Subsea 7 Competitors	$3.29 billion	$266.09 million	20.09

Subsea 7 has higher revenue, but lower earnings than its rivals. Subsea 7 is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Institutional & Insider Ownership

0.0% of Subsea 7 shares are owned by institutional investors. Comparatively, 57.9% of shares of all “Oil & gas field services, not elsewhere classified” companies are owned by institutional investors. 1.0% of Subsea 7 shares are owned by company insiders. Comparatively, 10.7% of shares of all “Oil & gas field services, not elsewhere classified” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Subsea 7 pays an annual dividend of $0.54 per share and has a dividend yield of 3.4%. Subsea 7 pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Oil & gas field services, not elsewhere classified” companies pay a dividend yield of 2.1% and pay out 35.2% of their earnings in the form of a dividend.

Analyst Ratings

This is a summary of current ratings and recommmendations for Subsea 7 and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Subsea 7	0	1	0	0	2.00
Subsea 7 Competitors	454	1309	2434	97	2.51

As a group, “Oil & gas field services, not elsewhere classified” companies have a potential upside of 17.85%. Given Subsea 7’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Subsea 7 has less favorable growth aspects than its rivals.

Summary

Subsea 7 rivals beat Subsea 7 on 9 of the 15 factors compared.

Subsea 7 Company Profile

Subsea 7 S.A. delivers offshore projects and services for the energy industry worldwide. It provides subsea field development products and services, including project management, design and engineering, procurement, fabrication, survey, installation, and commissioning of production facilities on the seabed and the tie-back of its facilities to fixed or floating platforms or to the shore. The company also offers engineering, procurement, commissioning, and installation of subsea umbilicals, risers, and flowlines; inspection, repair, maintenance, remote intervention, and integrity management of subsea infrastructure services; conventional services comprising fabrication, installation, extension, and refurbishment of fixed and floating platforms and associated pipelines in shallow water; and hook-up services. In addition, it operates heavy lifting operations and heavy transportation services for renewables structures; and installs offshore wind turbine foundations, as well as engages in the decommissioning of redundant offshore structures. Further, the company provides remotely operated vehicles (ROVs) and tooling services to support exploration and production activities, as well as engineering and advisory services for customers in the oil and gas, renewables, and utilities industries. The company was incorporated in 1993 and is based in Luxembourg, Luxembourg.