Transocean Ltd. (RIG) vs Sable Offshore Corp. (SOC)

Transocean Ltd. and Sable Offshore Corp. are both Oil & Gas Drilling companies. Transocean Ltd. is the larger, with a market value of $6.2B against $637.0M — 9.7× the size. Sable Offshore Corp. has the higher net margin (0.00% vs −40.2%) and the lower return on invested capital (−18.9% vs −4.91%). Across the 13 metrics below, Transocean Ltd. leads on 10 and Sable Offshore Corp. on 3.

Valuation

Metric RIG SOC Oil & Gas Drilling median
P/E n/m n/m —
P/S 1.53 n/m 1.45
P/B 0.75 1.29 1.40
Price to free cash flow 6.85 n/m 16.15
EV/EBITDA n/m n/m 8.53
EV/Sales 2.58 n/m 2.37
Earnings yield (31.44%) (99.10%) (2.00%)
Free cash flow yield 14.59% (109.66%) 3.55%

Profitability

Metric RIG SOC Oil & Gas Drilling median
Gross margin 100.00% — 39.29%
Operating margin (24.24%) 0.00% 7.77%
Net margin (40.24%) 0.00% 0.00%
Free cash flow margin 22.34% 0.00% 4.46%
Return on equity (18.70%) (103.21%) (2.78%)
Return on assets (10.05%) (24.55%) (1.64%)
Return on invested capital (4.91%) (18.87%) 2.29%

Growth

Metric RIG SOC Oil & Gas Drilling median
Revenue growth (TTM) 8.54% — 4.14%
EPS growth (last fiscal year) (449.23%) 55.47% (46.88%)
Revenue growth, 5-year CAGR 4.70% — 13.40%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric RIG SOC Oil & Gas Drilling median
Debt to equity 0.61 2.45 0.61
Current ratio 1.59 0.24 1.89
Net debt to EBITDA (2.86) (2.10) 0.90

Dividend

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

Size

Metric RIG SOC Oil & Gas Drilling median
Market cap 6.15b 637.01m 3.77b

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