Pacific Drilling (PACD) versus Transocean Partners (RIGP) Financial Contrast
Pacific Drilling (NYSE: PACD) and Transocean Partners (NYSE:RIGP) are both oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, risk, dividends, institutional ownership and profitabiliy.
Transocean Partners pays an annual dividend of $1.45 per share and has a dividend yield of 8.1%. Pacific Drilling does not pay a dividend. Transocean Partners pays out 70.0% of its earnings in the form of a dividend. Transocean Partners has increased its dividend for 2 consecutive years.
Risk & Volatility
Pacific Drilling has a beta of 2.53, suggesting that its stock price is 153% more volatile than the S&P 500. Comparatively, Transocean Partners has a beta of 1.68, suggesting that its stock price is 68% more volatile than the S&P 500.
This is a summary of current ratings and price targets for Pacific Drilling and Transocean Partners, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Pacific Drilling currently has a consensus price target of $6.00, suggesting a potential upside of 538.30%. Transocean Partners has a consensus price target of $18.00, suggesting a potential upside of 0.95%. Given Pacific Drilling’s higher probable upside, analysts plainly believe Pacific Drilling is more favorable than Transocean Partners.
Earnings and Valuation
This table compares Pacific Drilling and Transocean Partners’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Pacific Drilling||$669.60 million||0.03||$327.38 million||($13.19)||-0.07|
Pacific Drilling has higher revenue and earnings than Transocean Partners. Pacific Drilling is trading at a lower price-to-earnings ratio than Transocean Partners, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
7.1% of Pacific Drilling shares are held by institutional investors. Comparatively, 29.0% of Transocean Partners shares are held by institutional investors. 0.1% of Transocean Partners shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares Pacific Drilling and Transocean Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Transocean Partners beats Pacific Drilling on 10 of the 14 factors compared between the two stocks.
About Pacific Drilling
Pacific Drilling S.A. is an international offshore drilling contractor. The Company provides offshore drilling services to the oil and natural gas industry through the use of high-specification rigs. The Company’s primary business is to contract its high-specification rigs, related equipment and work crews, primarily on a day rate basis, to drill wells for its clients. The Company is engaged in drillships segment. The Company focuses on the high-specification segment of the floating rig market. The Company considers high-specification requirements to include rigs in water depths of approximately 7,500 feet or projects requiring advanced operating capabilities, such as hook-loads (>800 tons), accommodations (over 200 beds), mud storage and pumping capacity, and deck-load and space capabilities. The Company’s contract drillships operate in the deepwater regions of the United States, Gulf of Mexico and Nigeria.
About Transocean Partners
Transocean Partners LLC a limited liability company. The Company is formed by Transocean Partners Holdings Limited and a subsidiary of Transocean Ltd. (Transocean), to own, operate and acquire advanced offshore drilling rigs. The Company’s assets consist of over 50% ownership interest in each of the entities that owns and operates over three ultra-deepwater drilling rigs that are operating in the U.S. Gulf of Mexico, which include Discoverer Clear Leader, Discoverer Inspiration and Development Driller III. The Company owns or has partial ownership interests in, and operated over 60 mobile offshore drilling units, including approximately 30 ultra-deepwater floaters, over seven harsh environment floaters, approximately five deepwater floaters, over 10 midwater floaters and approximately 10 high-specification jackups. Transocean also has approximately six ultra-deepwater drillships and over five high-specification jackups under construction.
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