Transocean (NYSE: RIG) is one of 18 publicly-traded companies in the “Oil & Gas Drilling” industry, but how does it weigh in compared to its rivals? We will compare Transocean to related businesses based on the strength of its earnings, institutional ownership, dividends, profitability, risk, valuation and analyst recommendations.

Institutional and Insider Ownership

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for Transocean and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Transocean 9 10 13 0 2.13
Transocean Competitors 492 1506 1228 57 2.26

Transocean currently has a consensus target price of $12.53, suggesting a potential upside of 13.42%. As a group, “Oil & Gas Drilling” companies have a potential upside of 22.34%. Given Transocean’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Transocean has less favorable growth aspects than its rivals.

Earnings and Valuation

This table compares Transocean and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Transocean $3.42 billion $1.83 billion -3.85
Transocean Competitors $1.42 billion $540.19 million -6.87

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

Risk & Volatility

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

Profitability

This table compares Transocean and its rivals’ 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%

Summary

Transocean rivals beat Transocean on 7 of the 12 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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