Transocean (NYSE:RIG) and Royal Vopak (OTCMKTS:VOPKY) Head-To-Head Contrast

Transocean (NYSE:RIG) and Royal Vopak (OTCMKTS:VOPKY) are both mid-cap energy companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, risk, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Insider & Institutional Ownership

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Transocean and Royal Vopak, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Transocean	0	6	4	0	2.40
Royal Vopak	0	0	0	0	0.00

Transocean presently has a consensus price target of $4.58, suggesting a potential upside of 60.70%. Given Transocean’s stronger consensus rating and higher probable upside, analysts plainly believe Transocean is more favorable than Royal Vopak.

Earnings and Valuation

This table compares Transocean and Royal Vopak”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Transocean	$3.52 billion	0.71	-$512.00 million	($0.95)	-3.00
Royal Vopak	$1.42 billion	3.96	$406.55 million	$3.35	14.30

Royal Vopak has lower revenue, but higher earnings than Transocean. Transocean is trading at a lower price-to-earnings ratio than Royal Vopak, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Transocean has a beta of 2.5, meaning that its share price is 150% more volatile than the S&P 500. Comparatively, Royal Vopak has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500.

Profitability

This table compares Transocean and Royal Vopak’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Transocean	-18.79%	-0.94%	-0.50%
Royal Vopak	28.11%	12.15%	5.84%

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 Royal Vopak

Koninklijke Vopak N.V., an independent tank storage company, stores and handles liquid chemicals, gases, and oil products to the energy and manufacturing markets worldwide. The company operates LPG and chemical gas, industrial, chemical, and oil terminals; and owns and operates specialized facilities consisting of tanks, jetties, truck loading stations, and pipelines. It stores and handles chemicals, such as methanol, xylenes, styrene, alpha olefins, and mono-ethylene glycol; gas, including LNG, LPG, ethylene, butadiene, and ammonia; oil products consisting of crude oil, fuel oil, diesel, jet fuel, gasoline, and naphtha; and vegoils and biofuels comprising ethanol, biodiesel, and sustainable aviation fuel. In addition, the company is involved in the development of infrastructure solutions within ports for low-carbon and renewable hydrogen, CO2, long-duration energy storage, and sustainable fuels and feedstocks. Further, it operates 76 terminals in 23 countries with a storage capacity of 35.2 million cubic meters. It serves producers, manufacturers, distributors, governments, traders, and chemical and energy companies. The company was founded in 1616 and is headquartered in Rotterdam, the Netherlands.