Financial Comparison: AKITA Drilling (OTCMKTS:AKTAF) vs. Borr Drilling (NYSE:BORR)

AKITA Drilling (OTCMKTS:AKTAF) and Borr Drilling (NYSE:BORR) are both energy companies, but which is the better business? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, profitability, valuation, earnings and analyst recommendations.

Profitability

This table compares AKITA Drilling and Borr Drilling’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AKITA Drilling	N/A	N/A	N/A
Borr Drilling	2.86%	2.38%	0.72%

Institutional and Insider Ownership

29.2% of AKITA Drilling shares are held by institutional investors. Comparatively, 83.1% of Borr Drilling shares are held by institutional investors. 7.9% of Borr Drilling shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AKITA Drilling	0	0	0	0	N/A
Borr Drilling	0	1	0	0	2.00

Borr Drilling has a consensus target price of $9.00, indicating a potential upside of 31.39%. Given Borr Drilling’s higher possible upside, analysts plainly believe Borr Drilling is more favorable than AKITA Drilling.

Valuation and Earnings

This table compares AKITA Drilling and Borr Drilling’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AKITA Drilling	N/A	N/A	N/A	$1.32	0.87
Borr Drilling	$771.60 million	1.35	$22.10 million	$0.08	85.64

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

Summary

Borr Drilling beats AKITA Drilling on 8 of the 9 factors compared between the two stocks.

About AKITA Drilling

AKITA Drilling Ltd. operates as an oil and gas drilling contractor in Canada and the United States. It is involved in the drilling oil and gas wells, potash exploration and development wells, geothermal wells, disposal wells, and carbon storage wells, as well as wells to be developed into storage caverns for gas. The company was founded in 1964 and is headquartered in Calgary, Canada.

About Borr Drilling

Borr Drilling Limited operates as an offshore 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.