Based on the recent slump in Seadrill's (NYSE:SDRL) stock price, investors might be worried about losing the company's better than 10% dividend yield. If you look across the entire rig company space, though, Seadrill is not the only one having this issue. Its three major competitors -- Ensco (NYSE:ESV), Transocean (NYSE:RIG), and Diamond Offshore (NYSE:DO)-- have all suffered major drops in share price as well. 

Even thoguh there may be some worries that the rig market is oversupplied and Seadrill's balance sheet doesn't look the prettiest among its competitors, investors who are jumping ship may be interpreting the rig market. Tune into the video below to find out why Seadrill is in a better position than competitors like Diamond of Transocrean during an oversupplied market and why its recent contract with PEMEX is an indication of Seadrills strength.

Tyler Crowe has no position in any stocks mentioned. You can follow him at under the handle TMFDirtyBird, on Google+, or on Twitter, @TylerCroweFool.

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