Transocean (NYSE: RIG) is one of 18 public companies in the “Oil & Gas Drilling” industry, but how does it contrast to its competitors? We will compare Transocean to similar companies based on the strength of its institutional ownership, profitability, risk, valuation, dividends, earnings and analyst recommendations.

Earnings and Valuation

This table compares Transocean and its competitors gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Transocean $3.42 billion $1.83 billion -3.47
Transocean Competitors $1.42 billion $540.19 million -6.83

Transocean has higher revenue and earnings than its competitors. Transocean is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Transocean and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Transocean -33.52% 2.20% 1.30%
Transocean Competitors -18.41% -8.37% -2.62%

Analyst Recommendations

This is a breakdown of current ratings for Transocean and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Transocean 9 12 13 0 2.12
Transocean Competitors 493 1521 1235 57 2.26

Transocean currently has a consensus target price of $12.24, suggesting a potential upside of 23.06%. As a group, “Oil & Gas Drilling” companies have a potential upside of 24.01%. Given Transocean’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Transocean has less favorable growth aspects than its competitors.

Insider & Institutional Ownership

67.8% of Transocean shares are held by institutional investors. Comparatively, 74.9% of shares of all “Oil & Gas Drilling” companies are held by institutional investors. 0.3% of Transocean shares are held by insiders. Comparatively, 2.2% of shares of all “Oil & Gas Drilling” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Transocean has a beta of 1.76, meaning that its stock price is 76% more volatile than the S&P 500. Comparatively, Transocean’s competitors have a beta of 1.89, meaning that their average stock price is 89% more volatile than the S&P 500.

Summary

Transocean competitors beat Transocean on 7 of the 13 factors compared.

About Transocean

Transocean Ltd. is an international provider of offshore contract drilling services for oil and gas wells. The Company’s primary business is to contract its drilling rigs, related equipment and work crews on a dayrate basis to drill oil and gas wells. As of February 9, 2017, it owned or had partial ownership interests in and operated 56 mobile offshore drilling units. As of February 9, 2017, its fleet consisted of 30 floaters, seven harsh environment floaters, three deepwater floaters, six midwater floaters and 10 high-specification jackups. As February 9, 2017, it also had four ultra-deepwater drillships and five high-specification jackups under construction or under contract to be constructed. Its contract drilling services operations are spread across oil and gas exploration and development areas throughout the world. The Company’s drilling fleet can be characterized as floaters, including drillships and semisubmersibles, and jackups.

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