Transocean (NYSE:RIG) vs. Helmerich & Payne (HP) Financial Contrast
Transocean (NYSE: RIG) and Helmerich & Payne (NYSE:HP) are both mid-cap oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, institutional ownership, earnings, risk and profitabiliy.
Valuation & Earnings
This table compares Transocean and Helmerich & Payne’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Transocean||$3.61 billion||0.92||$1.84 billion||$1.66||5.13|
|Helmerich & Payne||$1.47 billion||4.00||$387.17 million||($1.66)||-32.61|
Transocean has higher revenue and earnings than Helmerich & Payne. Helmerich & Payne is trading at a lower price-to-earnings ratio than Transocean, indicating that it is currently the more affordable of the two stocks.
Helmerich & Payne pays an annual dividend of $2.80 per share and has a dividend yield of 5.2%. Transocean does not pay a dividend. Helmerich & Payne pays out -168.7% of its earnings in the form of a dividend. Transocean has increased its dividend for 4 consecutive years and Helmerich & Payne has increased its dividend for 44 consecutive years.
Volatility and Risk
Transocean has a beta of 1.67, suggesting that its stock price is 67% more volatile than the S&P 500. Comparatively, Helmerich & Payne has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500.
Insider & Institutional Ownership
67.5% of Transocean shares are held by institutional investors. 0.3% of Transocean shares are held by company insiders. Comparatively, 3.9% of Helmerich & Payne shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This table compares Transocean and Helmerich & Payne’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Helmerich & Payne||-12.09%||-3.96%||-2.65%|
This is a breakdown of current ratings and recommmendations for Transocean and Helmerich & Payne, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Helmerich & Payne||6||10||8||0||2.08|
Transocean currently has a consensus target price of $12.68, indicating a potential upside of 48.95%. Helmerich & Payne has a consensus target price of $57.85, indicating a potential upside of 6.87%. Given Transocean’s higher probable upside, equities analysts clearly believe Transocean is more favorable than Helmerich & Payne.
Transocean beats Helmerich & Payne on 9 of the 15 factors compared between the two stocks.
Transocean Company Profile
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.
Helmerich & Payne Company Profile
Helmerich & Payne, Inc. is engaged in contract drilling of oil and gas wells for others. The Company operates in the contract drilling industry. The Company’s contract drilling business consists of three segments: U.S. Land, Offshore and International Land. The Company is also engaged in the ownership, development and operation of commercial real estate and the research and development of rotary steerable technology. Its real estate investments are located within Tulsa, Oklahoma, and include a shopping center containing approximately 441,000 leasable square feet, multi-tenant industrial warehouse properties containing approximately one million leasable square feet and approximately 210 acres of undeveloped real estate. The Company provides drilling rigs, equipment, personnel and camps on a contract basis. The Company’s subsidiaries include Helmerich & Payne International Drilling Co. and Helmerich & Payne de Venezuela, C.A.
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