Helmerich & Payne, Inc. (HP) vs Transocean Ltd. (RIG)

Helmerich & Payne, Inc. and Transocean Ltd. are both Oil & Gas Drilling companies. Transocean Ltd. is the larger, with a market value of $5.7B against $3.5B — 1.6× the size. Helmerich & Payne, Inc. has negative trailing earnings, so its P/E is not meaningful; Transocean Ltd. trades at 20.3×. Helmerich & Payne, Inc. grew revenue faster over the last twelve months: 16.6% against 3.95%. Transocean Ltd. has the higher net margin (7.25% vs −3.43%) and the higher return on invested capital (4.05% vs 1.32%). Across the 20 metrics below, Transocean Ltd. leads on 11 and Helmerich & Payne, Inc. on 9.

Valuation

Metric HP RIG Oil & Gas Drilling median
P/E n/m 20.30 —
P/S 0.87 1.43 1.19
P/B 1.31 0.68 1.24
Price to free cash flow 7.12 7.31 14.65
EV/EBITDA 6.14 6.90 6.73
EV/Sales 1.27 2.48 2.12
Earnings yield (4.04%) 4.93% (0.70%)
Free cash flow yield 14.04% 13.67% 3.79%

Profitability

Metric HP RIG Oil & Gas Drilling median
Gross margin 28.82% 100.00% 33.60%
Operating margin 2.25% 20.41% 8.58%
Net margin (3.43%) 7.25% (0.52%)
Free cash flow margin 12.25% 19.54% 6.98%
Return on equity (4.95%) 3.53% (0.79%)
Return on assets (2.08%) 1.87% (0.45%)
Return on invested capital 1.32% 4.05% 2.81%

Growth

Metric HP RIG Oil & Gas Drilling median
Revenue growth (TTM) 16.57% 3.95% 3.33%
EPS growth (last fiscal year) (148.40%) (301.16%) (46.88%)
Revenue growth, 5-year CAGR 16.13% 4.70% 13.40%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric HP RIG Oil & Gas Drilling median
Debt to equity 0.70 0.59 0.59
Current ratio 1.96 1.53 1.76
Net debt to EBITDA 2.87 (2.86) 0.90

Dividend

Metric HP RIG Oil & Gas Drilling median
Dividend yield 2.87% — —
Payout ratio — — —

Size

Metric HP RIG Oil & Gas Drilling median
Market cap 3.47b 5.70b 3.61b

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