WallStSmart

Transocean Ltd (RIG)vsSeadrill Limited (SDRL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Transocean Ltd generates 179% more annual revenue ($4.12B vs $1.48B). SDRL leads profitability with a 0.1% profit margin vs -40.2%. SDRL earns a higher WallStSmart Score of 55/100 (C).

RIG

Buy

51

out of 100

Grade: C-

Growth: 4.7Profit: 4.5Value: 6.3Quality: 5.0
Piotroski: 5/9Altman Z: -0.22

SDRL

Buy

55

out of 100

Grade: C

Growth: 8.7Profit: 4.5Value: 3.0Quality: 8.0
Piotroski: 4/9Altman Z: 2.37
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

RIGUndervalued (+18.0%)

Margin of Safety

+18.0%

Fair Value

$6.90

Current Price

$5.64

$1.26 discount

UndervaluedFair: $6.90Overvalued
SDRLSignificantly Overvalued (-81.9%)

Margin of Safety

-81.9%

Fair Value

$23.64

Current Price

$47.49

$23.85 premium

UndervaluedFair: $23.64Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RIG1 strengths · Avg: 10.0/10
Price/BookValuation
0.8x10/10

Reasonable price relative to book value

SDRL4 strengths · Avg: 9.3/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

EPS GrowthGrowth
63.1%10/10

Earnings expanding 63.1% YoY

Debt/EquityHealth
0.269/10

Conservative balance sheet, low leverage

Revenue GrowthGrowth
19.1%8/10

19.1% revenue growth

Areas to Watch

RIG4 concerns · Avg: 2.5/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Return on EquityProfitability
-33.8%2/10

ROE of -33.8% — below average capital efficiency

Revenue GrowthGrowth
-2.2%2/10

Revenue declined 2.2%

Altman Z-ScoreHealth
-0.222/10

Distress zone — elevated risk

SDRL4 concerns · Avg: 2.3/10
Profit MarginProfitability
0.1%3/10

0.1% margin — thin

P/E RatioValuation
1607.0x2/10

Premium valuation, high expectations priced in

Return on EquityProfitability
-0.8%2/10

ROE of -0.8% — below average capital efficiency

Free Cash FlowQuality
$-175.00M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : RIG

The strongest argument for RIG centers on Price/Book. PEG of 1.17 suggests the stock is reasonably priced for its growth.

Bull Case : SDRL

The strongest argument for SDRL centers on Price/Book, EPS Growth, Debt/Equity. Revenue growth of 19.1% demonstrates continued momentum.

Bear Case : RIG

The primary concerns for RIG are EPS Growth, Return on Equity, Revenue Growth.

Bear Case : SDRL

The primary concerns for SDRL are Profit Margin, P/E Ratio, Return on Equity. A P/E of 1607.0x leaves little room for execution misses. Thin 0.1% margins leave little buffer for downturns.

Key Dynamics to Monitor

RIG profiles as a turnaround stock while SDRL is a growth play — different risk/reward profiles.

SDRL carries more volatility with a beta of 1.39 — expect wider price swings.

SDRL is growing revenue faster at 19.1% — sustainability is the question.

RIG generates stronger free cash flow (212M), providing more financial flexibility.

Bottom Line

SDRL scores higher overall (55/100 vs 51/100) and 19.1% revenue growth. RIG offers better value entry with a 18.0% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Transocean Ltd

ENERGY · OIL & GAS DRILLING · USA

Transocean Ltd., provides offshore contract drilling services for oil and gas wells globally. The company is headquartered in Steinhausen, Switzerland.

Seadrill Limited

ENERGY · OIL & GAS DRILLING · USA

Seadrill Limited, an offshore drilling contractor, provides offshore drilling services to the oil and gas industry globally. The company is headquartered in Hamilton, Bermuda.

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