BP vs Transocean Which Is Stronger?

BP and Transocean are two prominent companies in the oil and gas industry, each with their own unique strengths and challenges. BP, a multinational oil and gas company, has faced significant setbacks in recent years due to high-profile environmental disasters such as the Deepwater Horizon oil spill. On the other hand, Transocean, an offshore drilling contractor, has also encountered challenges but has been able to maintain a steady performance in the market. Investors interested in the energy sector may find opportunities for growth and stability in both BP and Transocean stocks.

BP or Transocean?

When comparing BP and Transocean, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between BP and Transocean.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. BP has a dividend yield of 6.08%, while Transocean has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. BP reports a 5-year dividend growth of -7.33% year and a payout ratio of 182.37%. On the other hand, Transocean reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with BP P/E ratio at 30.08 and Transocean's P/E ratio at -5.45. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. BP P/B ratio is 1.26 while Transocean's P/B ratio is 0.33.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, BP has seen a 5-year revenue growth of -0.19%, while Transocean's is -0.43%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with BP's ROE at 3.99% and Transocean's ROE at -5.95%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $29.70 for BP and $3.83 for Transocean. Over the past year, BP's prices ranged from $27.82 to $40.40, with a yearly change of 45.22%. Transocean's prices fluctuated between $3.83 and $6.88, with a yearly change of 79.63%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.