Critical Review: Ensco (ESV) & Sauer Energy (SENY)

Ensco (NYSE:ESV) and Sauer Energy (OTCMKTS:SENY) are both oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, profitability, risk, dividends, earnings and analyst recommendations.

Earnings and Valuation

This table compares Ensco and Sauer Energy’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ensco $1.84 billion 1.73 -$303.70 million ($0.52) -14.05
Sauer Energy N/A N/A -$1.59 million N/A N/A

Sauer Energy has lower revenue, but higher earnings than Ensco.

Profitability

This table compares Ensco and Sauer Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ensco -36.53% -5.98% -3.53%
Sauer Energy N/A -135.70% -112.94%

Insider and Institutional Ownership

98.9% of Ensco shares are owned by institutional investors. 0.7% of Ensco shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Ensco pays an annual dividend of $0.04 per share and has a dividend yield of 0.5%. Sauer Energy does not pay a dividend. Ensco pays out -7.7% of its earnings in the form of a dividend.

Volatility and Risk

Ensco has a beta of 1.83, meaning that its stock price is 83% more volatile than the S&P 500. Comparatively, Sauer Energy has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Ensco and Sauer Energy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ensco 1 8 7 0 2.38
Sauer Energy 0 0 0 0 N/A

Ensco presently has a consensus target price of $8.89, suggesting a potential upside of 21.39%. Given Ensco’s higher possible upside, equities analysts plainly believe Ensco is more favorable than Sauer Energy.

Summary

Ensco beats Sauer Energy on 10 of the 12 factors compared between the two stocks.

About Ensco

Ensco plc provides offshore contract drilling services to the oil and gas industry worldwide. It operates through three segments: Floaters, Jackups, and Other. The company owns and operates an offshore drilling rig fleet of 65 rigs, including 32 located in the Middle East, Africa, and the Asia Pacific, which comprise 3 rigs under construction; 14 located in North and South America, such as Brazil; and 19 located in Europe and the Mediterranean. It also offers management services on rigs owned by third-parties. The company serves government-owned and independent oil and gas companies. Ensco plc was founded in 1975 and is headquartered in London, the United Kingdom.

About Sauer Energy

Sauer Energy, Inc. develops and markets vertical axis wind turbines (VAWT) systems. The company focuses on providing its VAWT systems primarily under the WindCutter name. Its VAWT systems are would be used in residential and commercial buildings, oil rigs and off-shore platforms, ships, Islands and other remote facilities, and communications towers and bridges, as well as various industrial applications. Sauer Energy, Inc. was founded in 2008 and is headquartered in Oxnard, California.

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