Financial Review: New Source Energy Partners (OTCMKTS:NSLPQ) & Transocean (NYSE:RIG)

Transocean (NYSE:RIG) and New Source Energy Partners (OTCMKTS:NSLPQ) are both energy companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, valuation, profitability and risk.

Profitability

This table compares Transocean and New Source Energy Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Transocean	-18.79%	-0.94%	-0.50%
New Source Energy Partners	N/A	N/A	N/A

Institutional and Insider Ownership

67.7% of Transocean shares are owned by institutional investors. 12.3% of Transocean shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

Transocean has a beta of 2.54, suggesting that its share price is 154% more volatile than the S&P 500. Comparatively, New Source Energy Partners has a beta of 1.98, suggesting that its share price is 98% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Transocean and New Source Energy Partners, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Transocean	0	6	4	0	2.40
New Source Energy Partners	0	0	0	0	0.00

Transocean currently has a consensus price target of $4.58, indicating a potential upside of 73.81%. Given Transocean’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Transocean is more favorable than New Source Energy Partners.

Valuation & Earnings

This table compares Transocean and New Source Energy Partners”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Transocean	$3.52 billion	0.66	-$512.00 million	($0.95)	-2.77
New Source Energy Partners	N/A	N/A	N/A	N/A	N/A

New Source Energy Partners has lower revenue, but higher earnings than Transocean.

Summary

Transocean beats New Source Energy Partners on 7 of the 10 factors compared between the two stocks.

About Transocean

Transocean Ltd., together with its subsidiaries, provides offshore contract drilling services for oil and gas wells worldwide. It contracts mobile offshore drilling rigs, related equipment, and work crews to drill oil and gas wells. The company operates a fleet of mobile offshore drilling units, consisting of ultra-deepwater floaters and harsh environment floaters. It serves integrated energy companies, government-owned or government-controlled energy companies, and other independent energy companies. The company was founded in 1926 and is based in Steinhausen, Switzerland.

About New Source Energy Partners

New Source Energy Partners L.P. acquires, owns, develops, and produces oil and natural gas properties in the United States. It operates through two segments, Exploration and Production, and Oilfield Services. The company also offers various oilfield services, including wellsite services during the drilling and completion stages of a well, such as blowout prevention, surface valve, and flowback services for horizontal and vertical wells in oil, natural gas, and NGL production regions in North America. New Source Energy GP, LLC operates as a general partner of the company. The company was founded in 2012 and is headquartered in Oklahoma City, Oklahoma. On March 15, 2016, New Source Energy Partners LP, along with its affiliate, filed a voluntary petition for liquidation under Chapter 7 in the US Bankruptcy Court for the District of Delaware.