Noble Corporation PLC (NE) vs Transocean Ltd. (RIG)

Noble Corporation PLC and Transocean Ltd. are both Oil & Gas Drilling companies. Noble Corporation PLC is the larger, with a market value of $6.4B against $5.7B — 1.1× the size. Transocean Ltd. trades at the lower P/E: 20.3× against 116×. Transocean Ltd. grew revenue faster over the last twelve months: 3.95% against −13.1%. Transocean Ltd. has the higher net margin (7.25% vs 1.79%) and the higher return on invested capital (4.05% vs 3.84%). Across the 21 metrics below, Transocean Ltd. leads on 17 and Noble Corporation PLC on 4.

Valuation

Metric NE RIG Oil & Gas Drilling median
P/E 116.05 20.30 —
P/S 2.14 1.43 1.19
P/B 1.50 0.68 1.24
Price to free cash flow 17.95 7.31 14.65
EV/EBITDA 8.63 6.90 6.73
EV/Sales 2.67 2.48 2.12
Earnings yield 0.86% 4.93% (0.70%)
Free cash flow yield 5.57% 13.67% 3.79%

Profitability

Metric NE RIG Oil & Gas Drilling median
Gross margin 38.77% 100.00% 33.60%
Operating margin 11.95% 20.41% 8.58%
Net margin 1.79% 7.25% (0.52%)
Free cash flow margin 11.95% 19.54% 6.98%
Return on equity 1.22% 3.53% (0.79%)
Return on assets 0.73% 1.87% (0.45%)
Return on invested capital 3.84% 4.05% 2.81%

Growth

Metric NE RIG Oil & Gas Drilling median
Revenue growth (TTM) (13.05%) 3.95% 3.33%
EPS growth (last fiscal year) (54.39%) (301.16%) (46.88%)
Revenue growth, 5-year CAGR 27.79% 4.70% 13.40%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric NE RIG Oil & Gas Drilling median
Debt to equity 0.44 0.59 0.59
Current ratio 1.76 1.53 1.76
Net debt to EBITDA 1.52 (2.86) 0.90

Dividend

Metric NE RIG Oil & Gas Drilling median
Dividend yield 4.97% — —
Payout ratio 6.12 — —

Size

Metric NE RIG Oil & Gas Drilling median
Market cap 6.37b 5.70b 3.61b

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