Financial Contrast: New Source Energy Partners (OTCMKTS:NSLPQ) versus Transocean (NYSE:RIG)

New Source Energy Partners (OTCMKTS:NSLPQ) and Transocean (NYSE:RIG) are both energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, dividends, institutional ownership, risk, profitability, analyst recommendations and valuation.

Insider & 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 large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for New Source Energy Partners and Transocean, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
New Source Energy Partners	0	0	0	0	0.00
Transocean	0	6	4	0	2.40

Transocean has a consensus price target of $4.58, indicating a potential upside of 65.34%. Given Transocean’s stronger consensus rating and higher possible upside, analysts clearly believe Transocean is more favorable than New Source Energy Partners.

Profitability

This table compares New Source Energy Partners and Transocean’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
New Source Energy Partners	N/A	N/A	N/A
Transocean	-18.79%	-0.94%	-0.50%

Valuation & Earnings

This table compares New Source Energy Partners 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
New Source Energy Partners	N/A	N/A	N/A	N/A	N/A
Transocean	$3.52 billion	0.69	-$512.00 million	($0.95)	-2.92

New Source Energy Partners has higher earnings, but lower revenue than Transocean.

Summary

Transocean beats New Source Energy Partners on 6 of the 9 factors compared between the two stocks.

About New Source Energy Partners

New Source Energy Partners L.P. acquires, owns, develops, and produces oil and natural gas properties in the United States. It operates through two segments, Exploration and Production, and Oilfield Services. The company also offers various oilfield services, including wellsite services during the drilling and completion stages of a well, such as blowout prevention, surface valve, and flowback services for horizontal and vertical wells in oil, natural gas, and NGL production regions in North America. New Source Energy GP, LLC operates as a general partner of the company. The company was founded in 2012 and is headquartered in Oklahoma City, Oklahoma. On March 15, 2016, New Source Energy Partners LP, along with its affiliate, filed a voluntary petition for liquidation under Chapter 7 in the US Bankruptcy Court for the District of Delaware.

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.