Natural Gas Services Group (NYSE:NGS – Get Free Report) and Transocean (NYSE:RIG – Get Free Report) are both energy companies, but which is the better business? We will contrast the two companies based on the strength of their risk, institutional ownership, earnings, dividends, valuation, analyst recommendations and profitability.
Profitability
This table compares Natural Gas Services Group and Transocean’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Natural Gas Services Group | 12.17% | 7.99% | 3.86% |
| Transocean | -40.24% | 2.60% | 1.37% |
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Natural Gas Services Group and Transocean, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Natural Gas Services Group | 0 | 0 | 3 | 1 | 3.25 |
| Transocean | 3 | 4 | 3 | 1 | 2.18 |
Volatility & Risk
Natural Gas Services Group has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500. Comparatively, Transocean has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500.
Earnings and Valuation
This table compares Natural Gas Services Group and Transocean”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Natural Gas Services Group | $172.32 million | 2.70 | $19.93 million | $1.72 | 21.50 |
| Transocean | $3.96 billion | 1.48 | -$2.92 billion | ($1.88) | -2.80 |
Natural Gas Services Group has higher earnings, but lower revenue than Transocean. Transocean is trading at a lower price-to-earnings ratio than Natural Gas Services Group, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
65.6% of Natural Gas Services Group shares are owned by institutional investors. Comparatively, 67.7% of Transocean shares are owned by institutional investors. 3.1% of Natural Gas Services Group shares are owned by company insiders. Comparatively, 9.7% of Transocean shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Summary
Natural Gas Services Group beats Transocean on 9 of the 13 factors compared between the two stocks.
About Natural Gas Services Group
Natural Gas Services Group, Inc. provides natural gas compression equipment and services to the energy industry in the United States. It engineers and fabricates, operates, rents, and maintains natural gas compressors for oil and natural gas production and plant facilities. It also designs, fabricates, and assembles compressor units for rental or sale; and designs, manufactures, and sells a line of reciprocating natural gas compressor frames, cylinders, and parts. In addition, the company offers flare stacks and related ignition and control devices for the onshore and offshore incineration of gas compounds, such as hydrogen sulfide, carbon dioxide, natural gas, and liquefied petroleum gases. Further, it provides aftermarket services for its compressor and flare sales business; and exchange and rebuild program for small horsepower screw compressors. It markets its products to exploration and production companies that utilize compressor units for artificial lift applications; and oil and natural gas exploration and production companies. Natural Gas Services Group, Inc. was incorporated in 1998 and is headquartered in Midland, Texas.
About Transocean
Transocean Ltd., together with its subsidiaries, provides offshore contract drilling services for oil and gas wells worldwide. It contracts mobile offshore drilling rigs, related equipment, and work crews to drill oil and gas wells. The company operates a fleet of mobile offshore drilling units, consisting of ultra-deepwater floaters and harsh environment floaters. It serves integrated energy companies, government-owned or government-controlled energy companies, and other independent energy companies. The company was founded in 1926 and is based in Steinhausen, Switzerland.
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