SBM Offshore (OTCMKTS:SBFFY – Get Free Report) and Transocean (NYSE:RIG – Get Free Report) are both energy companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.
Earnings and Valuation
This table compares SBM Offshore and Transocean”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SBM Offshore | N/A | N/A | N/A | $1.13 | 34.83 |
| Transocean | $3.96 billion | 1.61 | -$2.92 billion | ($1.88) | -3.04 |
Institutional and Insider Ownership
67.7% of Transocean shares are held by institutional investors. 9.7% of Transocean shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Profitability
This table compares SBM Offshore and Transocean’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SBM Offshore | N/A | N/A | N/A |
| Transocean | -40.24% | 2.60% | 1.37% |
Analyst Ratings
This is a summary of recent ratings and recommmendations for SBM Offshore and Transocean, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SBM Offshore | 0 | 1 | 0 | 0 | 2.00 |
| Transocean | 3 | 4 | 3 | 1 | 2.18 |
Transocean has a consensus price target of $6.82, indicating a potential upside of 19.46%. Given Transocean’s stronger consensus rating and higher probable upside, analysts clearly believe Transocean is more favorable than SBM Offshore.
Summary
Transocean beats SBM Offshore on 9 of the 12 factors compared between the two stocks.
About SBM Offshore
SBM Offshore N.V. provides floating production solutions to the offshore energy industry worldwide. It operates in two segments, Lease and Operate, and Turnkey. It engages in the design, supply, installation, operation, lease, and life extension of floating production storage and offloading (FPSO) vessels, as well as semi-submersibles, tension leg floaters, turret mooring systems, floating offshore wind, and brownfield and offshore loading terminals. The company also provides catenary anchor leg mooring (CALM) or single point mooring (SPM) terminals; and solutions for flexible flowline and subsea structure installation works. It operates a fleet of 15 FPSOs and 1 semi-submersible unit. The company was formerly known as IHC Caland and changed its name to SBM Offshore N.V. in 2005. SBM Offshore N.V. was founded in 1862 and is headquartered in Schiphol, the Netherlands.
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.
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