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 $6.0B against $4.0B — 1.5× the size. Helmerich & Payne, Inc. grew revenue faster over the last twelve months: 16.6% against 8.54%. Helmerich & Payne, Inc. has the higher net margin (−3.43% vs −40.2%) and the higher return on invested capital (1.32% vs −4.91%). Across the 19 metrics below, Helmerich & Payne, Inc. leads on 12 and Transocean Ltd. on 7.

Valuation

Metric HP RIG Oil & Gas Drilling median
P/E n/m n/m —
P/S 0.97 1.46 1.37
P/B 1.45 0.72 1.35
Price to free cash flow 7.91 6.55 15.47
EV/EBITDA 6.61 n/m 8.26
EV/Sales 1.37 2.51 2.31
Earnings yield (3.64%) (32.90%) (2.10%)
Free cash flow yield 12.65% 15.27% 3.40%

Profitability

Metric HP RIG Oil & Gas Drilling median
Gross margin 28.82% 100.00% 39.29%
Operating margin 2.25% (24.24%) 7.77%
Net margin (3.43%) (40.24%) 0.00%
Free cash flow margin 12.25% 22.34% 4.46%
Return on equity (4.95%) (18.70%) (2.78%)
Return on assets (2.08%) (10.05%) (1.64%)
Return on invested capital 1.32% (4.91%) 2.29%

Growth

Metric HP RIG Oil & Gas Drilling median
Revenue growth (TTM) 16.57% 8.54% 4.14%
EPS growth (last fiscal year) (148.40%) (449.23%) —
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 0.61 0.61
Current ratio 1.96 1.59 1.89
Net debt to EBITDA 2.87 (2.86) 0.90

Dividend

Metric HP RIG Oil & Gas Drilling median
Dividend yield 3.73% — —
Payout ratio 0.45 0.00 0.00

Size

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

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