Critical Survey: Valaris (OTCMKTS:VALPQ) & InPlay Oil (OTCMKTS:IPOOF)

Valaris (OTCMKTS:VALPQ) and InPlay Oil (OTCMKTS:IPOOF) are both small-cap transportation companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, dividends, institutional ownership and risk.

Volatility and Risk

Valaris has a beta of 2.82, suggesting that its stock price is 182% more volatile than the S&P 500. Comparatively, InPlay Oil has a beta of 2.14, suggesting that its stock price is 114% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Valaris and InPlay Oil, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Valaris 1 0 0 0 1.00
InPlay Oil 0 1 0 0 2.00

Valaris presently has a consensus price target of $0.06, suggesting a potential downside of 37.82%. Given Valaris’ higher probable upside, equities analysts plainly believe Valaris is more favorable than InPlay Oil.

Profitability

This table compares Valaris and InPlay Oil’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Valaris -237.15% -15.28% -7.57%
InPlay Oil -233.19% -46.49% -21.98%

Institutional and Insider Ownership

62.2% of Valaris shares are owned by institutional investors. 0.5% of Valaris shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Valaris and InPlay Oil’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Valaris $2.05 billion 0.01 -$198.00 million ($5.83) -0.02
InPlay Oil $52.15 million 0.19 -$20.23 million N/A N/A

InPlay Oil has lower revenue, but higher earnings than Valaris.

Summary

Valaris beats InPlay Oil on 7 of the 11 factors compared between the two stocks.

About Valaris

Valaris plc provides offshore drilling services in various water depths worldwide. It operates a rig fleet of ultra-deepwater drillships, versatile semisubmersibles, and modern shallow-water jackups. The company’s offshore fleet includes 16 drillships, 12 semisubmersibles, 54 jackups, and 2 deepwater managed units. The company was formerly known as Ensco Rowan plc and changed its name to Valaris plc in July 2019. Valaris plc was incorporated in 2009 and is based in London, the United Kingdom. On August 19, 2020, Valaris plc, along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas.

About InPlay Oil

Inplay Oil Corp. engages in the acquisition, exploration, and development of petroleum and natural gas properties in Canada. The company produces and sells crude oil, natural gas, and natural gas liquids. It primarily holds interests in the Caradium Formation in the Pembina and Willesden Green pools located in West Central Alberta. Inplay Oil Corp. is based in Calgary, Canada.

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