Transocean vs Seadrill Which Is More Reliable?

Transocean and Seadrill are two major players in the offshore drilling industry, with both companies competing for market share and investor interest. Transocean, a Swiss-based company, has a long history of providing offshore drilling services, while Seadrill, a Norwegian company, has quickly gained prominence in the industry. Investors looking to invest in these stocks should consider factors such as market conditions, financial performance, and long-term growth potential. How do the stocks stack up against each other? Let's delve deeper into the comparison of Transocean vs Seadrill stocks.

Transocean or Seadrill?

When comparing Transocean and Seadrill, 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 Transocean and Seadrill.

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. Transocean has a dividend yield of -%, while Seadrill has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Transocean reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Seadrill 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 Transocean P/E ratio at -5.56 and Seadrill's P/E ratio at 6.02. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Transocean P/B ratio is 0.34 while Seadrill's P/B ratio is 0.86.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Transocean has seen a 5-year revenue growth of -0.43%, while Seadrill's is 4.28%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Transocean's ROE at -5.95% and Seadrill's ROE at 14.07%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $3.91 for Transocean and $38.50 for Seadrill. Over the past year, Transocean's prices ranged from $3.85 to $6.88, with a yearly change of 78.70%. Seadrill's prices fluctuated between $34.74 and $56.46, with a yearly change of 62.52%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.