Patterson-UTI Energy, Inc. (PTEN) vs Transocean Ltd. (RIG)

Patterson-UTI Energy, Inc. and Transocean Ltd. are both Oil & Gas Drilling companies. Transocean Ltd. is the larger, with a market value of $5.7B against $3.8B — 1.5× the size. Patterson-UTI Energy, Inc. has negative trailing earnings, so its P/E is not meaningful; Transocean Ltd. trades at 20.3×. Transocean Ltd. grew revenue faster over the last twelve months: 3.95% against 0.01%. Transocean Ltd. has the higher net margin (7.25% vs −0.52%) and the higher return on invested capital (4.05% vs 0.66%). Across the 20 metrics below, Transocean Ltd. leads on 13 and Patterson-UTI Energy, Inc. on 7.

Valuation

Metric PTEN RIG Oil & Gas Drilling median
P/E n/m 20.30 —
P/S 0.79 1.43 1.19
P/B 1.24 0.68 1.24
Price to free cash flow 11.35 7.31 14.65
EV/EBITDA 5.14 6.90 6.73
EV/Sales 0.98 2.48 2.12
Earnings yield (0.60%) 4.93% (0.70%)
Free cash flow yield 8.81% 13.67% 3.79%

Profitability

Metric PTEN RIG Oil & Gas Drilling median
Gross margin 24.07% 100.00% 33.60%
Operating margin 0.86% 20.41% 8.58%
Net margin (0.52%) 7.25% (0.52%)
Free cash flow margin 6.98% 19.54% 6.98%
Return on equity (0.79%) 3.53% (0.79%)
Return on assets (0.45%) 1.87% (0.45%)
Return on invested capital 0.66% 4.05% 2.81%

Growth

Metric PTEN RIG Oil & Gas Drilling median
Revenue growth (TTM) 0.01% 3.95% 3.33%
EPS growth (last fiscal year) 90.16% (301.16%) (46.88%)
Revenue growth, 5-year CAGR 33.83% 4.70% 13.40%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric PTEN RIG Oil & Gas Drilling median
Debt to equity 0.40 0.59 0.59
Current ratio 1.73 1.53 1.76
Net debt to EBITDA 0.90 (2.86) 0.90

Dividend

Metric PTEN RIG Oil & Gas Drilling median
Dividend yield 3.78% — —
Payout ratio — — —

Size

Metric PTEN RIG Oil & Gas Drilling median
Market cap 3.78b 5.70b 3.61b

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