Transocean Ltd. (RIG) vs Valaris Limited (VAL)

Transocean Ltd. and Valaris Limited are both Oil & Gas Drilling companies. Transocean Ltd. and Valaris Limited are of similar size ($5.7B and $5.4B). Valaris Limited trades at the lower P/E: 6.8× against 20.3×. Transocean Ltd. grew revenue faster over the last twelve months: 3.95% against −11.6%. Valaris Limited has the higher net margin (37.4% vs 7.25%) and the lower return on invested capital (3.13% vs 4.05%). Across the 20 metrics below, Transocean Ltd. leads on 11 and Valaris Limited on 9.

Valuation

Metric RIG VAL Oil & Gas Drilling median
P/E 20.30 6.80 —
P/S 1.43 2.54 1.19
P/B 0.68 1.66 1.24
Price to free cash flow 7.31 n/m 14.65
EV/EBITDA 6.90 23.16 6.73
EV/Sales 2.48 3.98 2.12
Earnings yield 4.93% 14.71% (0.70%)
Free cash flow yield 13.67% (1.89%) 3.79%

Profitability

Metric RIG VAL Oil & Gas Drilling median
Gross margin 100.00% 24.16% 33.60%
Operating margin 20.41% 8.98% 8.58%
Net margin 7.25% 37.35% (0.52%)
Free cash flow margin 19.54% (4.80%) 6.98%
Return on equity 3.53% 27.89% (0.79%)
Return on assets 1.87% 15.76% (0.45%)
Return on invested capital 4.05% 3.13% 2.81%

Growth

Metric RIG VAL Oil & Gas Drilling median
Revenue growth (TTM) 3.95% (11.61%) 3.33%
EPS growth (last fiscal year) (301.16%) 172.18% (46.88%)
Revenue growth, 5-year CAGR 4.70% 10.67% 13.40%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric RIG VAL Oil & Gas Drilling median
Debt to equity 0.59 0.33 0.59
Current ratio 1.53 1.64 1.76
Net debt to EBITDA (2.86) 0.78 0.90

Dividend

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

Size

Metric RIG VAL Oil & Gas Drilling median
Market cap 5.70b 5.37b 3.61b

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