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BORR vs VAL
Which Stock Would AI Choose? Borr Drilling (BORR) vs. Valaris (VAL) Stock Comparison
Key Takeaways
- BORR is a pure-play shallow-water jack-up drilling specialist with a market capitalization of approximately $1.3 billion, while VAL is a diversified offshore driller operating both deepwater floaters and jack-up rigs with a market cap near $5.5 billion.
- VAL carries a significantly larger contract backlog of roughly $4.7 billion compared to BORR's $649 million in dayrate-equivalent backlog, reflecting its broader fleet and deepwater exposure.
- BORR has recently expanded its fleet through the $360 million acquisition of five premium jack-up rigs from Noble Corporation, while VAL announced an all-stock merger with Transocean, reshaping the competitive landscape.
- Valuation metrics diverge sharply: VAL trades at a trailing P/E (price-to-earnings) ratio of approximately 5.6, while BORR trades at a trailing P/E near 28, reflecting different earnings profiles and market perceptions.
- Both companies operate in the same cyclical industry, but VAL benefits from deepwater demand tailwinds and a multi-year contracted revenue stream, while BORR is more exposed to near-term jack-up day-rate fluctuations.
Introduction
Offshore drilling stocks have experienced notable volatility in recent quarters, driven by shifting crude oil prices, evolving contract dynamics, and structural changes within the energy sector. Investors seeking exposure to this cyclical industry often encounter two distinct names: BORR (Borr Drilling) and VAL (Valaris). Though both companies provide offshore contract drilling services, they differ considerably in scale, fleet composition, financial structure, and market positioning. This comparison examines how these two stocks stack up across key dimensions, offering traders and investors a clearer picture of the trade-offs involved when choosing between a focused jack-up pure-play and a diversified drilling powerhouse with deepwater and shallow-water capabilities.
BORR Overview and Recent Performance
Borr Drilling is an offshore shallow-water drilling contractor that owns and operates a modern fleet of jack-up rigs deployed across the Americas, Southeast Asia, West Africa, the Middle East, North Africa, and Europe. The company was founded in 2016 and has since built one of the industry's youngest and most technologically advanced jack-up fleets. Over recent months, BORR has delivered strong operational metrics, including a technical utilization rate of 98.8% and an economic utilization rate of 97.8% in its most recently reported quarter. Full-year 2025 Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization, a measure of operating profitability) reached $470.1 million, landing at the top end of management's guidance range.
Strategically, Borr Drilling completed the $360 million acquisition of five premium jack-up rigs from Noble Corporation, expanding its fleet to 29 units. The company also raised liquidity through a $102.5 million equity offering and secured amendments to its revolving credit facilities. However, near-term headwinds include pressure on day rates — the daily fees charged for rig contracts — as the market absorbs excess capacity following Saudi Aramco's suspension of numerous jack-up rigs. The company's contract coverage for 2026 stands at 80% for the first half but drops to 48% for the second half, indicating revenue visibility tapers later in the year. Borr's management has expressed confidence that the jack-up market bottom is now behind it, pointing to a multi-year high in the global tendering pipeline.
VAL Overview and Recent Performance
Valaris Limited is one of the world's largest offshore drilling contractors by fleet size, operating across four segments: Floaters (drillships and semisubmersible rigs), Jackups, ARO (its joint venture with Aramco), and Other services. With a fleet that spans ultra-deepwater drillships to modern shallow-water jack-ups, VAL serves a broad range of clients including integrated energy companies, national oil companies, and independent operators across six continents. In recent quarters, Valaris has maintained exceptional revenue efficiency — measuring the percentage of potential revenue actually earned — at 98% for its latest quarter and 96% for the full year 2025, marking its fifth consecutive year at or above 96%.
Valaris has demonstrated significant commercial momentum, securing nearly $900 million in new contract backlog since its third-quarter 2025 report, bringing its total backlog to approximately $4.7 billion. Notably, the company confirmed that all ten of its active drillships are expected to be working as it enters 2027, a key strategic objective. A transformative event for VAL has been the announcement of an all-stock merger with Transocean, which is expected to generate meaningful synergies and create a combined entity with enhanced scale. Valaris also repurchased $100 million of its own shares during 2025, signaling management's confidence in the company's valuation. Adjusted EBITDA for the most recent quarter was $97 million, while net income reached $717 million, boosted by a substantial one-time tax benefit of $680 million.
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Head-to-Head Comparison
When comparing BORR and VAL, the most fundamental distinction lies in fleet composition and market focus. Borr Drilling is exclusively concentrated in the jack-up segment, making it a high-conviction bet on shallow-water drilling activity. Valaris, by contrast, operates a diversified fleet that includes both jack-ups and deepwater floaters, giving it exposure to multiple demand drivers across the offshore drilling spectrum. This diversification has translated into a substantially larger contract backlog — $4.7 billion for Valaris versus $649 million for Borr — and greater revenue visibility extending further into the future.
From a valuation standpoint, the two stocks present a striking contrast. VAL trades at a trailing P/E ratio near 5.6, which appears inexpensive but reflects that a significant portion of recent net income came from a non-recurring tax benefit. BORR's trailing P/E of approximately 28 reflects thinner earnings and a higher degree of financial leverage, with a net debt-to-EBITDA ratio above 3.8 compared to Valaris' more conservative balance sheet. On an enterprise value-to-EBITDA (EV/EBITDA) basis — a valuation metric commonly used for capital-intensive industries — Borr trades near 7.5x while Valaris is closer to 9.2x, partially reflecting the market's willingness to pay a premium for Valaris' diversified fleet, deeper backlog, and large-cap stability. Risk profiles also differ: Borr is more exposed to day-rate volatility in the competitive jack-up market and carries higher leverage, while Valaris faces integration risk from the Transocean merger but benefits from stronger balance-sheet flexibility and a multi-year contracted revenue base.
Tickeron AI Verdict
Based on observable factors including trend consistency, contract visibility, balance-sheet strength, and relative market positioning, Tickeron's AI framework would likely lean toward VAL in the current environment. Valaris' $4.7 billion backlog provides multi-year revenue visibility that reduces uncertainty, while its diversified fleet across both deepwater and shallow-water segments offers more ways to capture demand as the offshore cycle evolves. The company's high-specification drillship fleet is essentially fully contracted into 2027, and the pending Transocean merger, while introducing execution risk, could unlock significant synergies. Borr Drilling, by contrast, presents a higher-risk, potentially higher-reward profile: if jack-up day rates recover as management expects, Borr's operating leverage could deliver outsized returns relative to its smaller market capitalization. However, the combination of higher financial leverage, shorter-duration contract coverage, and greater sensitivity to near-term day-rate softness makes BORR the more probabilistic, less stable choice. In a market environment where visibility and balance-sheet resilience are at a premium, VAL currently exhibits the more consistent set of characteristics that an AI-driven model would favor.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is BORR is a StrongBuy and VAL is a Buy.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
BORR’s FA Score shows that 1 FA rating(s) are green whileVAL’s FA Score has 1 green FA rating(s).
- BORR’s FA Score: 1 green, 4 red.
- VAL’s FA Score: 1 green, 4 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
BORR’s TA Score shows that 4 TA indicator(s) are bullish while VAL’s TA Score has 5 bullish TA indicator(s).
- BORR’s TA Score: 4 bullish, 5 bearish.
- VAL’s TA Score: 5 bullish, 2 bearish.
Price Growth
BORR (@Contract Drilling) experienced а -4.73% price change this week, while VAL (@Contract Drilling) price change was -0.43% for the same time period.
The average weekly price growth across all stocks in the @Contract Drilling industry was -0.66%. For the same industry, the average monthly price growth was +10.28%, and the average quarterly price growth was +8.58%.
Reported Earning Dates
BORR is expected to report earnings on Aug 11, 2026.
VAL is expected to report earnings on Aug 05, 2026.
Industries' Descriptions
@Contract Drilling (-0.66% weekly)The contract drilling industry includes companies that provide onshore and offshore drilling services to the energy sector. Services are delivered on a contractual or per-fee basis. Customers of this industry include major and independent oil and gas companies. Strong oil demand could potentially boost contract fees. Helmerich & Payne, Inc., Transocean Ltd and Patterson-UTI Energy, Inc. are among the major drilling companies in the U.S.
| BORR | VAL | BORR / VAL | |
| Capitalization | 1.24B | 5.48B | 23% |
| EBITDA | 449M | 663M | 68% |
| Gain YTD | 0.000 | 57.123 | - |
| P/E Ratio | 26.87 | 5.60 | 480% |
| Revenue | 1.05B | 2.21B | 47% |
| Total Cash | 246M | 578M | 43% |
| Total Debt | 2.31B | 1.16B | 200% |
BORR | VAL | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 13 | 25 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 45 Fair valued | 64 Fair valued | |
PROFIT vs RISK RATING 1..100 | 76 | 49 | |
SMR RATING 1..100 | 89 | 26 | |
PRICE GROWTH RATING 1..100 | 57 | 42 | |
P/E GROWTH RATING 1..100 | 6 | 97 | |
SEASONALITY SCORE 1..100 | 50 | 30 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
BORR's Valuation (45) in the null industry is in the same range as VAL (64) in the Industrial Specialties industry. This means that BORR’s stock grew similarly to VAL’s over the last 12 months.
VAL's Profit vs Risk Rating (49) in the Industrial Specialties industry is in the same range as BORR (76) in the null industry. This means that VAL’s stock grew similarly to BORR’s over the last 12 months.
VAL's SMR Rating (26) in the Industrial Specialties industry is somewhat better than the same rating for BORR (89) in the null industry. This means that VAL’s stock grew somewhat faster than BORR’s over the last 12 months.
VAL's Price Growth Rating (42) in the Industrial Specialties industry is in the same range as BORR (57) in the null industry. This means that VAL’s stock grew similarly to BORR’s over the last 12 months.
BORR's P/E Growth Rating (6) in the null industry is significantly better than the same rating for VAL (97) in the Industrial Specialties industry. This means that BORR’s stock grew significantly faster than VAL’s over the last 12 months.
| BORR | VAL | |
|---|---|---|
| RSI ODDS (%) | 3 days ago 81% | 3 days ago 73% |
| Stochastic ODDS (%) | 3 days ago 87% | 3 days ago 77% |
| Momentum ODDS (%) | 3 days ago 83% | 3 days ago 78% |
| MACD ODDS (%) | 3 days ago 71% | 3 days ago 68% |
| TrendWeek ODDS (%) | 3 days ago 81% | 3 days ago 73% |
| TrendMonth ODDS (%) | 3 days ago 83% | 3 days ago 78% |
| Advances ODDS (%) | 3 days ago 82% | 3 days ago 78% |
| Declines ODDS (%) | 5 days ago 76% | 5 days ago 74% |
| BollingerBands ODDS (%) | 3 days ago 90% | N/A |
| Aroon ODDS (%) | 3 days ago 90% | 3 days ago 75% |
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BORR and
Correlation & Price change
A.I.dvisor indicates that over the last year, BORR has been closely correlated with PDS. These tickers have moved in lockstep 68% of the time. This A.I.-generated data suggests there is a high statistical probability that if BORR jumps, then PDS could also see price increases.
| Ticker / NAME | Correlation To BORR | 1D Price Change % | ||
|---|---|---|---|---|
| BORR | 100% | +1.00% | ||
| PDS - BORR | 68% Closely correlated | +2.02% | ||
| NBR - BORR | 67% Closely correlated | +4.22% | ||
| SDRL - BORR | 62% Loosely correlated | +3.70% | ||
| VAL - BORR | 60% Loosely correlated | +4.78% | ||
| RIG - BORR | 60% Loosely correlated | +4.72% | ||
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VAL and
Correlation & Price change
A.I.dvisor indicates that over the last year, VAL has been closely correlated with NE. These tickers have moved in lockstep 76% of the time. This A.I.-generated data suggests there is a high statistical probability that if VAL jumps, then NE could also see price increases.
| Ticker / NAME | Correlation To VAL | 1D Price Change % | ||
|---|---|---|---|---|
| VAL | 100% | +4.78% | ||
| NE - VAL | 76% Closely correlated | +2.32% | ||
| RIG - VAL | 74% Closely correlated | +4.72% | ||
| SDRL - VAL | 65% Loosely correlated | +3.70% | ||
| BORR - VAL | 60% Loosely correlated | +1.00% | ||
| TS - VAL | 59% Loosely correlated | +1.06% | ||
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