Head to Head Survey: Royal Vopak (OTCMKTS:VOPKY) & Transocean (NYSE:RIG)

Royal Vopak (OTCMKTS:VOPKY) and Transocean (NYSE:RIG) are both mid-cap energy companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, dividends, risk and earnings.

Profitability

This table compares Royal Vopak and Transocean’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Royal Vopak	37.14%	12.16%	5.72%
Transocean	-39.64%	0.45%	0.24%

Risk & Volatility

Royal Vopak has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500. Comparatively, Transocean has a beta of 2.52, meaning that its share price is 152% more volatile than the S&P 500.

Valuation and Earnings

This table compares Royal Vopak and Transocean”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Royal Vopak	$1.42 billion	4.08	$406.55 million	$4.54	10.85
Transocean	$3.52 billion	0.81	-$512.00 million	($1.86)	-1.63

Royal Vopak has higher earnings, but lower revenue than Transocean. Transocean is trading at a lower price-to-earnings ratio than Royal Vopak, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

67.7% of Transocean shares are owned by institutional investors. 12.3% of Transocean shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for Royal Vopak and Transocean, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Royal Vopak	0	0	0	0	0.00
Transocean	0	6	4	0	2.40

Transocean has a consensus price target of $4.2556, suggesting a potential upside of 40.68%. Given Transocean’s stronger consensus rating and higher probable upside, analysts plainly believe Transocean is more favorable than Royal Vopak.

About Royal Vopak

Koninklijke Vopak N.V., an independent tank storage company, stores and handles liquid chemicals, gases, and oil products to the energy and manufacturing markets worldwide. The company operates LPG and chemical gas, industrial, chemical, and oil terminals; and owns and operates specialized facilities consisting of tanks, jetties, truck loading stations, and pipelines. It stores and handles chemicals, such as methanol, xylenes, styrene, alpha olefins, and mono-ethylene glycol; gas, including LNG, LPG, ethylene, butadiene, and ammonia; oil products consisting of crude oil, fuel oil, diesel, jet fuel, gasoline, and naphtha; and vegoils and biofuels comprising ethanol, biodiesel, and sustainable aviation fuel. In addition, the company is involved in the development of infrastructure solutions within ports for low-carbon and renewable hydrogen, CO2, long-duration energy storage, and sustainable fuels and feedstocks. Further, it operates 76 terminals in 23 countries with a storage capacity of 35.2 million cubic meters. It serves producers, manufacturers, distributors, governments, traders, and chemical and energy companies. The company was founded in 1616 and is headquartered in Rotterdam, the Netherlands.

About Transocean

Transocean Ltd., together with its subsidiaries, provides offshore contract drilling services for oil and gas wells worldwide. It contracts mobile offshore drilling rigs, related equipment, and work crews to drill oil and gas wells. The company operates a fleet of mobile offshore drilling units, consisting of ultra-deepwater floaters and harsh environment floaters. It serves integrated energy companies, government-owned or government-controlled energy companies, and other independent energy companies. The company was founded in 1926 and is based in Steinhausen, Switzerland.