NCS Multistage (NASDAQ:NCSM – Get Free Report) and Transocean (NYSE:RIG – Get Free Report) are both energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, dividends, analyst recommendations, earnings, institutional ownership, risk and valuation.
Risk & Volatility
NCS Multistage has a beta of 0.22, meaning that its stock price is 78% less volatile than the S&P 500. Comparatively, Transocean has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500.
Profitability
This table compares NCS Multistage and Transocean’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NCS Multistage | 7.61% | 2.40% | 1.91% |
| Transocean | -40.24% | 2.60% | 1.37% |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NCS Multistage | $183.63 million | 0.76 | $23.75 million | $4.86 | 10.98 |
| Transocean | $3.96 billion | 1.62 | -$2.92 billion | ($1.88) | -3.07 |
NCS Multistage has higher earnings, but lower revenue than Transocean. Transocean is trading at a lower price-to-earnings ratio than NCS Multistage, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings and price targets for NCS Multistage and Transocean, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NCS Multistage | 0 | 2 | 0 | 1 | 2.67 |
| Transocean | 3 | 4 | 3 | 1 | 2.18 |
Transocean has a consensus price target of $6.68, suggesting a potential upside of 15.85%. Given Transocean’s higher probable upside, analysts plainly believe Transocean is more favorable than NCS Multistage.
Insider & Institutional Ownership
70.9% of NCS Multistage shares are owned by institutional investors. Comparatively, 67.7% of Transocean shares are owned by institutional investors. 11.9% of NCS Multistage shares are owned by company insiders. Comparatively, 9.7% of Transocean shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
NCS Multistage beats Transocean on 8 of the 14 factors compared between the two stocks.
About NCS Multistage
NCS Multistage Holdings, Inc. provides engineered products and support services for oil and natural gas well completions and construction, and field development strategies in the United States, Canada, and internationally. It offers fracturing systems, which include casing-installed sliding sleeves, downhole frac isolation assemblies, and sand jet perforating products; enhanced recovery products, such as sliding sleeve, as well as Terrus system, an injection control device; repeat precision products comprising composite frac plugs and bridge plugs, single-use disposable setting tools, express systems, and related products; chemical and radioactive tracer diagnostics services; and well construction products, including AirLock casing buoyancy system, Vecturon and Vectraset liner hanger systems, and Toe initiation sleeves. It offers its products and services primarily to exploration and production companies for use in onshore wells through technically-trained sales force, and operating partners or sales representatives. The company was formerly known as Pioneer Super Holdings, Inc. and changed its name to NCS Multistage Holdings, Inc. in December 2016. NCS Multistage Holdings, Inc. was founded in 2006 and is headquartered in Houston, Texas.
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.
Receive News & Ratings for NCS Multistage Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for NCS Multistage and related companies with MarketBeat.com's FREE daily email newsletter.
