Transocean Partners (NYSE: RIGP) and Mammoth Energy Services (NASDAQ:TUSK) are both small-cap oil & gas drilling – nec companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, dividends, analyst recommendations, institutional ownership, risk and valuation.
Valuation & Earnings
This table compares Transocean Partners and Mammoth Energy Services’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Mammoth Energy Services||$691.50 million||1.57||-$88.40 million||$1.30||18.77|
Transocean Partners has higher earnings, but lower revenue than Mammoth Energy Services. Transocean Partners is trading at a lower price-to-earnings ratio than Mammoth Energy Services, indicating that it is currently the more affordable of the two stocks.
This table compares Transocean Partners and Mammoth Energy Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Mammoth Energy Services||8.54%||15.19%||10.60%|
This is a breakdown of current ratings and price targets for Transocean Partners and Mammoth Energy Services, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Mammoth Energy Services||0||2||8||0||2.80|
Mammoth Energy Services has a consensus price target of $26.33, suggesting a potential upside of 7.92%. Given Mammoth Energy Services’ higher probable upside, analysts clearly believe Mammoth Energy Services is more favorable than Transocean Partners.
Insider and Institutional Ownership
29.0% of Transocean Partners shares are owned by institutional investors. Comparatively, 70.5% of Mammoth Energy Services shares are owned by institutional investors. 0.1% of Transocean Partners shares are owned by insiders. Comparatively, 0.0% of Mammoth Energy Services shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Transocean Partners pays an annual dividend of $1.45 per share and has a dividend yield of 8.1%. Mammoth Energy Services does not pay a dividend. Transocean Partners pays out 60.2% of its earnings in the form of a dividend. Mammoth Energy Services has raised its dividend for 3 consecutive years.
Mammoth Energy Services beats Transocean Partners on 8 of the 13 factors compared between the two stocks.
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.
Mammoth Energy Services Company Profile
Mammoth Energy Services, Inc. is an integrated oilfield service company. The Company is engaged in the exploration and development of North American onshore unconventional oil and natural gas reserves. The Company’s segments include Contract Land and Directional Drilling Services; Completion and Production Services; Natural Sand Proppant Services, and Remote Accommodation Services. Its Completion and Production Services division provides pressure pumping services, pressure control Services, flowback services and equipment rentals. Its Natural Sand Proppant Services division is engaged in selling, distributing and producing proppant for hydraulic fracturing. Its Contract Land and Directional Drilling Services division provides drilling rigs and crews for operators, as well as rental equipment. Its Remote Accommodation Services division provides housing, kitchen and dining, and recreational service facilities for oilfield workers located in remote areas.
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