Transocean (RIG) Competitors

Transocean (NYSE:RIG) and Viper Energy (NASDAQ:VNOM) are both energy companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, analyst recommendations, valuation, institutional ownership, profitability, community ranking, media sentiment and earnings.

Do analysts prefer RIG or VNOM?

Transocean presently has a consensus target price of $4.98, indicating a potential upside of 121.83%. Viper Energy has a consensus target price of $58.62, indicating a potential upside of 55.97%. Given Transocean's higher possible upside, equities research analysts plainly believe Transocean is more favorable than Viper Energy.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Transocean	1 Sell rating(s)	6 Hold rating(s)	3 Buy rating(s)	0 Strong Buy rating(s)	2.20
Viper Energy	0 Sell rating(s)	0 Hold rating(s)	13 Buy rating(s)	0 Strong Buy rating(s)	3.00

Which has more risk and volatility, RIG or VNOM?

Transocean has a beta of 2.29, indicating that its share price is 129% more volatile than the S&P 500. Comparatively, Viper Energy has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500.

Do institutionals & insiders believe in RIG or VNOM?

67.7% of Transocean shares are held by institutional investors. Comparatively, 87.7% of Viper Energy shares are held by institutional investors. 13.2% of Transocean shares are held by insiders. Comparatively, 0.3% of Viper Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Is RIG or VNOM a better dividend stock?

Transocean pays an annual dividend of $0.60 per share and has a dividend yield of 26.7%. Viper Energy pays an annual dividend of $1.20 per share and has a dividend yield of 3.2%. Transocean pays out -82.2% of its earnings in the form of a dividend. Viper Energy pays out 32.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Transocean is clearly the better dividend stock, given its higher yield and lower payout ratio.

Does the media favor RIG or VNOM?

In the previous week, Transocean had 8 more articles in the media than Viper Energy. MarketBeat recorded 21 mentions for Transocean and 13 mentions for Viper Energy. Viper Energy's average media sentiment score of 1.16 beat Transocean's score of 0.20 indicating that Viper Energy is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Transocean	4 Very Positive mention(s)	4 Positive mention(s)	4 Neutral mention(s)	5 Negative mention(s)	0 Very Negative mention(s)	Neutral
Viper Energy	8 Very Positive mention(s)	1 Positive mention(s)	1 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Is RIG or VNOM more profitable?

Viper Energy has a net margin of 24.65% compared to Transocean's net margin of -14.53%. Viper Energy's return on equity of 6.72% beat Transocean's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Transocean	-14.53%	-0.52%	-0.27%
Viper Energy	24.65%	6.72%	4.98%

Does the MarketBeat Community favor RIG or VNOM?

Transocean received 390 more outperform votes than Viper Energy when rated by MarketBeat users. However, 64.92% of users gave Viper Energy an outperform vote while only 51.48% of users gave Transocean an outperform vote.

Company	Underperform	Outperform
Transocean	Outperform Votes 923 51.48%	Underperform Votes 870 48.52%
Viper Energy	Outperform Votes 533 64.92%	Underperform Votes 288 35.08%

Which has higher valuation & earnings, RIG or VNOM?

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

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Transocean	$3.52B	0.56	-$954M	-$0.73	-3.08
Viper Energy	$859.75M	9.31	$200.09M	$3.67	10.24

Summary

Viper Energy beats Transocean on 12 of the 20 factors compared between the two stocks.