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 $7.0B against $6.0B — 1.2× the size. Transocean Ltd. has negative trailing earnings, so its P/E is not meaningful; Noble Corporation PLC trades at 45.1×. Transocean Ltd. grew revenue faster over the last twelve months: 8.54% against −11.1%. Noble Corporation PLC has the higher net margin (4.88% vs −40.2%) and the higher return on invested capital (3.68% vs −4.91%). Across the 19 metrics below, Noble Corporation PLC leads on 10 and Transocean Ltd. on 9.

Valuation

Metric NE RIG Oil & Gas Drilling median
P/E 45.07 n/m —
P/S 2.23 1.46 1.37
P/B 1.52 0.72 1.35
Price to free cash flow 11.00 6.55 15.47
EV/EBITDA 8.99 n/m 8.26
EV/Sales 2.70 2.51 2.31
Earnings yield 2.22% (32.90%) (2.10%)
Free cash flow yield 9.09% 15.27% 3.40%

Profitability

Metric NE RIG Oil & Gas Drilling median
Gross margin 39.78% 100.00% 39.29%
Operating margin 11.37% (24.24%) 7.77%
Net margin 4.88% (40.24%) 0.00%
Free cash flow margin 20.25% 22.34% 4.46%
Return on equity 3.28% (18.70%) (2.78%)
Return on assets 2.01% (10.05%) (1.64%)
Return on invested capital 3.68% (4.91%) 2.29%

Growth

Metric NE RIG Oil & Gas Drilling median
Revenue growth (TTM) (11.10%) 8.54% 4.14%
EPS growth (last fiscal year) (54.39%) (449.23%) —
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 0.42 0.61 0.61
Current ratio 1.91 1.59 1.89
Net debt to EBITDA 1.52 (2.86) 0.90

Dividend

Metric NE RIG Oil & Gas Drilling median
Dividend yield 1.43% — —
Payout ratio 0.00 0.00 0.00

Size

Metric NE RIG Oil & Gas Drilling median
Market cap 6.98b 6.04b 3.98b

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