Valaris (VAL) Competitors

Valaris (NYSE:VAL) and Transocean (NYSE:RIG) are both mid-cap oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, dividends, community ranking, valuation, profitability, risk, earnings, institutional ownership and media sentiment.

Does the media refer more to VAL or RIG?

In the previous week, Transocean had 21 more articles in the media than Valaris. MarketBeat recorded 26 mentions for Transocean and 5 mentions for Valaris. Valaris' average media sentiment score of 0.48 beat Transocean's score of 0.23 indicating that Valaris is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Valaris	2 Very Positive mention(s)	1 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral
Transocean	6 Very Positive mention(s)	4 Positive mention(s)	7 Neutral mention(s)	1 Negative mention(s)	1 Very Negative mention(s)	Neutral

Which has more risk and volatility, VAL or RIG?

Valaris has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500. Comparatively, Transocean has a beta of 2.75, suggesting that its share price is 175% more volatile than the S&P 500.

Is VAL or RIG a better dividend stock?

Valaris pays an annual dividend of $1.48 per share and has a dividend yield of 3.6%. Transocean pays an annual dividend of $0.60 per share and has a dividend yield of 17.0%. Valaris pays out 10.2% of its earnings in the form of a dividend. Transocean pays out -80.0% 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.

Is VAL or RIG more profitable?

Valaris has a net margin of 47.52% compared to Transocean's net margin of -18.81%. Valaris' return on equity of 13.67% beat Transocean's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Valaris	47.52%	13.67%	6.54%
Transocean	-18.81%	-1.48%	-0.77%

Does the MarketBeat Community favor VAL or RIG?

Transocean received 903 more outperform votes than Valaris when rated by MarketBeat users. Likewise, 51.57% of users gave Transocean an outperform vote while only 38.30% of users gave Valaris an outperform vote.

Company	Underperform	Outperform
Valaris	Outperform Votes 18 38.30%	Underperform Votes 29 61.70%
Transocean	Outperform Votes 921 51.57%	Underperform Votes 865 48.43%

Which has stronger earnings and valuation, VAL or RIG?

Valaris has higher earnings, but lower revenue than Transocean. Transocean is trading at a lower price-to-earnings ratio than Valaris, 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
Valaris	$2.26B	1.30	$865.40M	$14.56	2.83
Transocean	$3.31B	0.93	-$954M	-$0.75	-4.71

Do institutionals & insiders believe in VAL or RIG?

96.7% of Valaris shares are owned by institutional investors. Comparatively, 67.7% of Transocean shares are owned by institutional investors. 0.1% of Valaris shares are owned by company insiders. Comparatively, 13.2% of Transocean shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Do analysts rate VAL or RIG?

Valaris presently has a consensus price target of $64.33, indicating a potential upside of 56.07%. Transocean has a consensus price target of $6.25, indicating a potential upside of 77.05%. Given Transocean's stronger consensus rating and higher possible upside, analysts clearly believe Transocean is more favorable than Valaris.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Valaris	1 Sell rating(s)	5 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	2.00
Transocean	1 Sell rating(s)	4 Hold rating(s)	4 Buy rating(s)	0 Strong Buy rating(s)	2.33

Summary

Transocean beats Valaris on 11 of the 20 factors compared between the two stocks.