Comparing Borr Drilling (NYSE:BORR) and Solar Integrated Roofing (OTCMKTS:SIRC)

Solar Integrated Roofing (OTCMKTS:SIRC) and Borr Drilling (NYSE:BORR) are both small-cap energy companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, dividends, analyst recommendations, valuation and risk.

Insider and Institutional Ownership

83.1% of Borr Drilling shares are held by institutional investors. 4.3% of Solar Integrated Roofing shares are held by insiders. Comparatively, 7.9% of Borr Drilling shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Solar Integrated Roofing	-623.62%	N/A	N/A
Borr Drilling	8.12%	8.27%	2.51%

Volatility & Risk

Solar Integrated Roofing has a beta of 0.24, indicating that its stock price is 76% less volatile than the S&P 500. Comparatively, Borr Drilling has a beta of 2.69, indicating that its stock price is 169% more volatile than the S&P 500.

Earnings & Valuation

This table compares Solar Integrated Roofing and Borr Drilling”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Solar Integrated Roofing	$37.31 million	0.03	-$27.40 million	($0.03)	0.00
Borr Drilling	$1.01 billion	0.54	$22.10 million	$0.32	6.98

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

Analyst Ratings

This is a summary of current recommendations and price targets for Solar Integrated Roofing and Borr Drilling, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solar Integrated Roofing	0	0	0	0	0.00
Borr Drilling	0	0	1	0	3.00

Borr Drilling has a consensus target price of $9.00, indicating a potential upside of 302.68%. Given Borr Drilling’s stronger consensus rating and higher possible upside, analysts clearly believe Borr Drilling is more favorable than Solar Integrated Roofing.

Summary

Borr Drilling beats Solar Integrated Roofing on 14 of the 14 factors compared between the two stocks.

About Solar Integrated Roofing

Solar Integrated Roofing Corp. provides integrated, single-source solar power and roofing systems installation services for commercial and residential properties in the United States. It offers battery backup, electric vehicle charging, roofing, and related HVAC/electrical contracting works; and sells solar panels. The company was formerly known as Landstar Development Group, Inc. and changed its name to Solar Integrated Roofing Corp. in November 2015. Solar Integrated Roofing Corp. was incorporated in 2007 and is based in Henderson, Nevada.

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.