Transocean Partners (RIGP) versus Its Competitors Critical Analysis

Transocean Partners (NYSE: RIGP) is one of 16 public companies in the “Oil & Gas Drilling” industry, but how does it weigh in compared to its competitors? We will compare Transocean Partners to related companies based on the strength of its valuation, institutional ownership, analyst recommendations, earnings, dividends, risk and profitability.

Analyst Recommendations

This is a summary of recent ratings and target prices for Transocean Partners and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Transocean Partners 0 0 1 0 3.00
Transocean Partners Competitors 496 1560 1259 57 2.26

Transocean Partners currently has a consensus price target of $18.00, indicating a potential upside of 0.95%. As a group, “Oil & Gas Drilling” companies have a potential upside of 14.48%. Given Transocean Partners’ competitors higher probable upside, analysts clearly believe Transocean Partners has less favorable growth aspects than its competitors.

Dividends

Transocean Partners pays an annual dividend of $1.45 per share and has a dividend yield of 8.1%. Transocean Partners pays out 60.2% of its earnings in the form of a dividend. As a group, “Oil & Gas Drilling” companies pay a dividend yield of 4.2% and pay out -143.6% of their earnings in the form of a dividend. Transocean Partners has increased its dividend for 2 consecutive years.

Insider & Institutional Ownership

29.0% of Transocean Partners shares are held by institutional investors. Comparatively, 72.7% of shares of all “Oil & Gas Drilling” companies are held by institutional investors. 0.1% of Transocean Partners shares are held by company insiders. Comparatively, 2.2% of shares of all “Oil & Gas Drilling” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Transocean Partners and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Transocean Partners 53.12% 13.03% 15.28%
Transocean Partners Competitors -19.63% -6.20% -1.67%

Valuation & Earnings

This table compares Transocean Partners and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Transocean Partners N/A N/A 7.40
Transocean Partners Competitors $1.59 billion -$49.50 million -0.35

Transocean Partners’ competitors have higher revenue, but lower earnings than Transocean Partners. Transocean Partners is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Transocean Partners Company Profile

Transocean Partners LLC a limited liability company. The Company is formed by Transocean Partners Holdings Limited and a subsidiary of Transocean Ltd. (Transocean), to own, operate and acquire advanced offshore drilling rigs. The Company’s assets consist of over 50% ownership interest in each of the entities that owns and operates over three ultra-deepwater drilling rigs that are operating in the U.S. Gulf of Mexico, which include Discoverer Clear Leader, Discoverer Inspiration and Development Driller III. The Company owns or has partial ownership interests in, and operated over 60 mobile offshore drilling units, including approximately 30 ultra-deepwater floaters, over seven harsh environment floaters, approximately five deepwater floaters, over 10 midwater floaters and approximately 10 high-specification jackups. Transocean also has approximately six ultra-deepwater drillships and over five high-specification jackups under construction.

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