Borr Drilling Limited (BORR) vs Transocean Ltd. (RIG)

Borr Drilling Limited and Transocean Ltd. are both Oil & Gas Drilling companies. Transocean Ltd. is the larger, with a market value of $6.0B against $1.3B — 4.5× the size. Transocean Ltd. grew revenue faster over the last twelve months: 8.54% against 2.71%. Borr Drilling Limited has the higher net margin (−24.0% vs −40.2%) and the higher return on invested capital (4.11% vs −4.91%). Across the 18 metrics below, Borr Drilling Limited leads on 9 and Transocean Ltd. on 9.

Valuation

Metric BORR RIG Oil & Gas Drilling median
P/E n/m n/m —
P/S 1.27 1.46 1.37
P/B 1.35 0.72 1.35
Price to free cash flow n/m 6.55 15.47
EV/EBITDA 9.67 n/m 8.26
EV/Sales 3.63 2.51 2.31
Earnings yield (18.53%) (32.90%) (2.10%)
Free cash flow yield (8.35%) 15.27% 3.40%

Profitability

Metric BORR RIG Oil & Gas Drilling median
Gross margin 42.08% 100.00% 39.29%
Operating margin 20.84% (24.24%) 7.77%
Net margin (23.98%) (40.24%) 0.00%
Free cash flow margin (10.63%) 22.34% 4.46%
Return on equity (24.68%) (18.70%) (2.78%)
Return on assets (6.91%) (10.05%) (1.64%)
Return on invested capital 4.11% (4.91%) 2.29%

Growth

Metric BORR RIG Oil & Gas Drilling median
Revenue growth (TTM) 2.71% 8.54% 4.14%
EPS growth (last fiscal year) (46.88%) (449.23%) —
Revenue growth, 5-year CAGR 27.12% 4.70% 13.40%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric BORR RIG Oil & Gas Drilling median
Debt to equity 2.58 0.61 0.61
Current ratio 2.53 1.59 1.89
Net debt to EBITDA 3.67 (2.86) 0.90

Dividend

Metric BORR RIG Oil & Gas Drilling median
Dividend yield 0.16% — —
Payout ratio 0.00 0.00 0.00

Size

Metric BORR RIG Oil & Gas Drilling median
Market cap 1.33b 6.04b 3.98b

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