Western Energy Services (OTCMKTS:WEEEF) and Transocean (NYSE:RIG) are both oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, valuation, institutional ownership, profitability, earnings and dividends.
Institutional & Insider Ownership
0.1% of Western Energy Services shares are owned by institutional investors. Comparatively, 76.2% of Transocean shares are owned by institutional investors. 11.1% of Transocean shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Western Energy Services has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500. Comparatively, Transocean has a beta of 1.83, suggesting that its stock price is 83% more volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for Western Energy Services and Transocean, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Western Energy Services||0||0||0||0||N/A|
Transocean has a consensus target price of $13.80, indicating a potential upside of 60.47%. Given Transocean’s higher probable upside, analysts plainly believe Transocean is more favorable than Western Energy Services.
Valuation and Earnings
This table compares Western Energy Services and Transocean’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Western Energy Services||$182.41 million||0.11||-$31.75 million||N/A||N/A|
|Transocean||$3.02 billion||1.74||-$2.00 billion||($0.79)||-10.89|
Western Energy Services has higher earnings, but lower revenue than Transocean.
This table compares Western Energy Services and Transocean’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Western Energy Services||-17.35%||-11.17%||-6.02%|
Transocean beats Western Energy Services on 9 of the 11 factors compared between the two stocks.
Western Energy Services Company Profile
Western Energy Services Corp. operates as an oilfield service company in Canada and the United States. The company operates through Contract Drilling and Production Services segments. The Contract Drilling segment includes drilling rig and related ancillary equipment services. The Production Services segment offers well servicing rig and related equipment services. This segment also provides oilfield rental equipment services to other oilfield service companies. The company had a fleet of 57 drilling rigs; and 66 service rigs. It serves crude oil and natural gas exploration and production companies. Western Energy Services Corp. is headquartered in Calgary, Canada.
Transocean Company Profile
Transocean Ltd., together with its subsidiaries, provides offshore contract drilling services for oil and gas wells worldwide. The company primarily offers drilling rigs, related equipment, and work crews; and ultra-deepwater and harsh environment drilling services. As of February 18, 2019, it owned or had partial ownership interests in, and operated 48 mobile offshore drilling units that consist of 31 ultra-deepwater floaters, 13 harsh environment floaters, and 4 midwater floaters. The company serves integrated oil companies or their affiliates, as well as government-controlled oil companies and independent oil companies. Transocean Ltd. was founded in 1953 and is based in Steinhausen, Switzerland.
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