Transocean Ltd. (RIG) vs Seadrill Limited (SDRL)

Transocean Ltd. and Seadrill Limited are both Oil & Gas Drilling companies. Transocean Ltd. is the larger, with a market value of $6.0B against $2.9B — 2.1× the size. Transocean Ltd. has negative trailing earnings, so its P/E is not meaningful; Seadrill Limited trades at 1,519×. Seadrill Limited grew revenue faster over the last twelve months: 13.1% against 8.54%. Seadrill Limited has the higher net margin (0.07% vs −40.2%) and the higher return on invested capital (2.29% vs −4.91%). Across the 18 metrics below, Seadrill Limited leads on 12 and Transocean Ltd. on 6.

Valuation

Metric RIG SDRL Oil & Gas Drilling median
P/E n/m 1,519.00 —
P/S 1.46 1.84 1.37
P/B 0.72 0.99 1.35
Price to free cash flow 6.55 n/m 15.47
EV/EBITDA n/m 8.26 8.26
EV/Sales 2.51 2.10 2.31
Earnings yield (32.90%) 0.07% (2.10%)
Free cash flow yield 15.27% (4.64%) 3.40%

Profitability

Metric RIG SDRL Oil & Gas Drilling median
Gross margin 100.00% 49.54% 39.29%
Operating margin (24.24%) 7.77% 7.77%
Net margin (40.24%) 0.07% 0.00%
Free cash flow margin 22.34% (8.55%) 4.46%
Return on equity (18.70%) 0.03% (2.78%)
Return on assets (10.05%) 0.02% (1.64%)
Return on invested capital (4.91%) 2.29% 2.29%

Growth

Metric RIG SDRL Oil & Gas Drilling median
Revenue growth (TTM) 8.54% 13.06% 4.14%
EPS growth (last fiscal year) (449.23%) (119.47%) —
Revenue growth, 5-year CAGR 4.70% 6.29% 13.40%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric RIG SDRL Oil & Gas Drilling median
Debt to equity 0.61 0.26 0.61
Current ratio 1.59 2.50 1.89
Net debt to EBITDA (2.86) 0.87 0.90

Dividend

Metric RIG SDRL Oil & Gas Drilling median
Dividend yield — — —
Payout ratio 0.00 — 0.00

Size

Metric RIG SDRL Oil & Gas Drilling median
Market cap 6.04b 2.90b 3.98b

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