Nabors Industries Ltd. (NBR) vs Transocean Ltd. (RIG)

Nabors Industries Ltd. and Transocean Ltd. are both Oil & Gas Drilling companies. Transocean Ltd. is the larger, with a market value of $5.7B against $1.1B — 5.3× the size. Nabors Industries Ltd. has negative trailing earnings, so its P/E is not meaningful; Transocean Ltd. trades at 20.3×. Nabors Industries Ltd. grew revenue faster over the last twelve months: 4.42% against 3.95%. Transocean Ltd. has the higher net margin (7.25% vs −1.78%) and the higher return on invested capital (4.05% vs 2.38%). Across the 20 metrics below, Transocean Ltd. leads on 13 and Nabors Industries Ltd. on 7.

Valuation

Metric NBR RIG Oil & Gas Drilling median
P/E n/m 20.30 —
P/S 0.32 1.43 1.19
P/B 2.45 0.68 1.24
Price to free cash flow 26.40 7.31 14.65
EV/EBITDA 2.26 6.90 6.73
EV/Sales 0.90 2.48 2.12
Earnings yield (3.08%) 4.93% (0.70%)
Free cash flow yield 3.79% 13.67% 3.79%

Profitability

Metric NBR RIG Oil & Gas Drilling median
Gross margin 38.38% 100.00% 33.60%
Operating margin 8.40% 20.41% 8.58%
Net margin (1.78%) 7.25% (0.52%)
Free cash flow margin 0.00% 19.54% 6.98%
Return on equity (8.57%) 3.53% (0.79%)
Return on assets (1.26%) 1.87% (0.45%)
Return on invested capital 2.38% 4.05% 2.81%

Growth

Metric NBR RIG Oil & Gas Drilling median
Revenue growth (TTM) 4.42% 3.95% 3.33%
EPS growth (last fiscal year) 177.74% (301.16%) (46.88%)
Revenue growth, 5-year CAGR 8.51% 4.70% 13.40%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric NBR RIG Oil & Gas Drilling median
Debt to equity 2.04 0.59 0.59
Current ratio 1.77 1.53 1.76
Net debt to EBITDA 1.10 (2.86) 0.90

Dividend

Metric NBR RIG Oil & Gas Drilling median
Dividend yield — — —
Payout ratio — — —

Size

Metric NBR RIG Oil & Gas Drilling median
Market cap 1.08b 5.70b 3.61b

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