Financial Contrast: Transocean (NYSE:RIG) and NCS Multistage (NASDAQ:NCSM)

NCS Multistage (NASDAQ:NCSM) and Transocean (NYSE:RIG) are both energy companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, profitability, institutional ownership, valuation and risk.

Valuation and Earnings

This table compares NCS Multistage and Transocean”s gross revenue, earnings per share (EPS) and valuation.

	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	1.59	-$2.92 billion	($1.88)	-3.00

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.

Risk and Volatility

NCS Multistage has a beta of 0.22, indicating that its share price is 78% less volatile than the S&P 500. Comparatively, Transocean has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500.

Institutional & Insider Ownership

70.9% of NCS Multistage shares are held by institutional investors. Comparatively, 67.7% of Transocean shares are held by institutional investors. 11.9% of NCS Multistage shares are held by company insiders. Comparatively, 9.7% of Transocean shares are held 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.

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%

Analyst Ratings

This is a breakdown of current recommendations 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 target price of $6.68, indicating a potential upside of 18.44%. Given Transocean’s higher probable upside, analysts clearly believe Transocean is more favorable than NCS Multistage.

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.