Smart Sand (NASDAQ:SND – Get Free Report) and Transocean (NYSE:RIG – Get Free Report) are both energy companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, earnings, institutional ownership and profitability.
Profitability
This table compares Smart Sand and Transocean’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Smart Sand | 2.71% | 4.41% | 3.07% |
| Transocean | 7.25% | 1.84% | 1.00% |
Analyst Recommendations
This is a breakdown of current recommendations for Smart Sand and Transocean, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Smart Sand | 0 | 0 | 1 | 0 | 3.00 |
| Transocean | 3 | 5 | 3 | 1 | 2.17 |
Transocean has a consensus price target of $6.61, indicating a potential upside of 25.73%. Given Transocean’s higher probable upside, analysts clearly believe Transocean is more favorable than Smart Sand.
Risk and Volatility
Smart Sand has a beta of 0.43, indicating that its stock price is 57% less volatile than the S&P 500. Comparatively, Transocean has a beta of 1.44, indicating that its stock price is 44% more volatile than the S&P 500.
Earnings & Valuation
This table compares Smart Sand and Transocean”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Smart Sand | $330.15 million | 0.52 | $1.35 million | $0.26 | 15.54 |
| Transocean | $3.96 billion | 1.48 | -$2.92 billion | $0.14 | 37.54 |
Smart Sand has higher earnings, but lower revenue than Transocean. Smart Sand is trading at a lower price-to-earnings ratio than Transocean, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
35.2% of Smart Sand shares are owned by institutional investors. Comparatively, 67.7% of Transocean shares are owned by institutional investors. 33.5% of Smart Sand shares are owned by company insiders. Comparatively, 9.7% of Transocean shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
Transocean beats Smart Sand on 9 of the 15 factors compared between the two stocks.
About Smart Sand
Smart Sand, Inc. is a proppant and logistics company that supplies high-quality frac sand to the North American oil and natural gas industry. Its products are used in hydraulic fracturing to keep underground fractures open, helping producers access hydrocarbons from shale and other unconventional formations. The company produces Northern White sand from its mining and processing operations in Wisconsin. Its offerings include various grades and sizes of frac sand, along with related storage, handling, transportation and delivery services.
About Transocean
Transocean Ltd. is an offshore contract drilling company that provides drilling services to oil and gas companies around the world. Its work focuses on offshore exploration and development, particularly in deepwater and harsh-environment locations. The company owns and operates a fleet of offshore drilling rigs, including drillships and semisubmersible rigs. It contracts these rigs to customers and provides the crews and related services needed to conduct offshore drilling operations. Transocean serves customers across multiple offshore regions worldwide.
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