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 $6.2B against $1.2B — 5.3× the size. Transocean Ltd. has negative trailing earnings, so its P/E is not meaningful; Nabors Industries Ltd. trades at 5.3×. Transocean Ltd. grew revenue faster over the last twelve months: 8.54% against 5.56%. Nabors Industries Ltd. has the higher net margin (6.49% vs −40.2%) and the higher return on invested capital (11.8% vs −4.91%). Across the 19 metrics below, Nabors Industries Ltd. leads on 11 and Transocean Ltd. on 8.

Valuation

Metric NBR RIG Oil & Gas Drilling median
P/E 5.27 n/m —
P/S 0.35 1.53 1.45
P/B 1.18 0.75 1.40
Price to free cash flow 28.15 6.85 16.15
EV/EBITDA 2.36 n/m 8.53
EV/Sales 0.96 2.58 2.37
Earnings yield 18.98% (31.44%) (2.00%)
Free cash flow yield 3.55% 14.59% 3.55%

Profitability

Metric NBR RIG Oil & Gas Drilling median
Gross margin 38.80% 100.00% 39.29%
Operating margin 20.78% (24.24%) 7.77%
Net margin 6.49% (40.24%) 0.00%
Free cash flow margin 1.23% 22.34% 4.46%
Return on equity 26.47% (18.70%) (2.78%)
Return on assets 4.44% (10.05%) (1.64%)
Return on invested capital 11.75% (4.91%) 2.29%

Growth

Metric NBR RIG Oil & Gas Drilling median
Revenue growth (TTM) 5.56% 8.54% 4.14%
EPS growth (last fiscal year) 177.74% (449.23%) (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 2.24 0.61 0.61
Current ratio 1.89 1.59 1.89
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 1.16b 6.15b 3.77b

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