Head-To-Head Survey: Ocean Rig (ORIG) & Rowan Companies (RDC)

Ocean Rig (NASDAQ: ORIG) and Rowan Companies (NYSE:RDC) are both mid-cap oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, analyst recommendations, institutional ownership, earnings, dividends and risk.

Earnings and Valuation

This table compares Ocean Rig and Rowan Companies’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ocean Rig $1.01 billion 2.43 -$5.40 million N/A N/A
Rowan Companies $1.28 billion 1.65 $72.70 million ($0.64) -26.11

Rowan Companies has higher revenue and earnings than Ocean Rig.

Analyst Recommendations

This is a breakdown of current recommendations for Ocean Rig and Rowan Companies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ocean Rig 0 1 2 0 2.67
Rowan Companies 1 11 5 0 2.24

Ocean Rig presently has a consensus price target of $30.00, suggesting a potential upside of 12.02%. Rowan Companies has a consensus price target of $14.13, suggesting a potential downside of 15.42%. Given Ocean Rig’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Ocean Rig is more favorable than Rowan Companies.

Risk and Volatility

Ocean Rig has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500. Comparatively, Rowan Companies has a beta of 1.78, indicating that its share price is 78% more volatile than the S&P 500.

Insider & Institutional Ownership

78.0% of Ocean Rig shares are owned by institutional investors. 1.6% of Rowan Companies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Ocean Rig and Rowan Companies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ocean Rig N/A N/A N/A
Rowan Companies -4.46% -3.83% -2.42%

Summary

Ocean Rig beats Rowan Companies on 7 of the 12 factors compared between the two stocks.

About Ocean Rig

Ocean Rig UDW Inc., an offshore drilling contractor, provides oilfield services for offshore oil and gas exploration, development, and production drilling worldwide. It specializes in the ultra-deepwater and harsh-environment segment of the offshore drilling industry. The company owns and operates two fifth generation harsh weather ultra-deepwater semisubmersible offshore drilling units under the Leiv Eiriksson and Eirik Raude names; five sixth generation ultra-deepwater drilling units under the Ocean Rig Corcovado, the Ocean Rig Olympia, the Ocean Rig Poseidon, and the Ocean Rig Mykonos names; and four seventh generation drilling units under the Ocean Rig Mylos, the Ocean Rig Skyros, the Ocean Rig Athena, and the Ocean Rig Apollo names. It serves oil companies, integrated oil and gas companies, state-owned national oil companies, and independent oil and gas companies. The company is based in George Town, the Cayman Islands.

About Rowan Companies

Rowan Companies plc provides offshore oil and gas contract drilling services to the oil and gas industry. The company operates through Deepwater, Jack-ups, and ARO segments. The Deepwater segment operates 4 ultra-deepwater drillships. The Jack-ups segment operates 23 self-elevating jack-up rigs. The ARO segment operates 5 self-elevating jack-up rigs. The company operates in the United States Gulf of Mexico, the United Kingdom, and Norwegian sectors of the North Sea, the Middle East, and Trinidad. Rowan Companies plc was founded in 1923 and is based in Houston, Texas.

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