Ensco (ESV) and Ocean Rig (ORIG) Head to Head Survey

Ensco (NYSE: ESV) and Ocean Rig (NASDAQ:ORIG) are both mid-cap oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and price targets for Ensco and Ocean Rig, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ensco 2 10 5 0 2.18
Ocean Rig 0 1 2 0 2.67

Ensco presently has a consensus price target of $6.47, indicating a potential downside of 3.77%. Ocean Rig has a consensus price target of $30.00, indicating a potential upside of 14.64%. Given Ocean Rig’s stronger consensus rating and higher probable upside, analysts clearly believe Ocean Rig is more favorable than Ensco.

Dividends

Ensco pays an annual dividend of $0.04 per share and has a dividend yield of 0.6%. Ocean Rig does not pay a dividend. Ensco pays out -7.7% of its earnings in the form of a dividend.

Institutional & Insider Ownership

97.9% of Ensco shares are owned by institutional investors. Comparatively, 81.3% of Ocean Rig shares are owned by institutional investors. 0.7% of Ensco shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Ensco and Ocean Rig’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ensco -23.37% -3.35% -1.99%
Ocean Rig N/A N/A N/A

Valuation and Earnings

This table compares Ensco and Ocean Rig’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ensco $1.84 billion 1.59 -$303.70 million ($0.52) -12.92
Ocean Rig $1.01 billion 2.37 -$5.40 million N/A N/A

Ocean Rig has lower revenue, but higher earnings than Ensco.

Volatility and Risk

Ensco has a beta of 1.78, meaning that its share price is 78% more volatile than the S&P 500. Comparatively, Ocean Rig has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500.

Ensco Company Profile

Ensco plc provides offshore contract drilling services to the oil and gas industry worldwide. It operates through three segments: Floaters, Jackups, and Other. The company owns and operates an offshore drilling rig fleet of 65 rigs, including 32 located in the Middle East, Africa, and the Asia Pacific, which comprise 3 rigs under construction; 14 located in North and South America, such as Brazil; and 19 located in Europe and the Mediterranean. It also offers management services on rigs owned by third-parties. The company serves government-owned and independent oil and gas companies. Ensco plc was founded in 1975 and is headquartered in London, the United Kingdom.

Ocean Rig Company Profile

Ocean Rig UDW Inc., an offshore drilling contractor, provides oilfield services for offshore oil and gas exploration, development, and production drilling worldwide. It specializes in the ultra-deepwater and harsh-environment segment of the offshore drilling industry. The company owns and operates two fifth generation harsh weather ultra-deepwater semisubmersible offshore drilling units under the Leiv Eiriksson and Eirik Raude names; five sixth generation ultra-deepwater drilling units under the Ocean Rig Corcovado, the Ocean Rig Olympia, the Ocean Rig Poseidon, and the Ocean Rig Mykonos names; and four seventh generation drilling units under the Ocean Rig Mylos, the Ocean Rig Skyros, the Ocean Rig Athena, and the Ocean Rig Apollo names. It serves oil companies, integrated oil and gas companies, state-owned national oil companies, and independent oil and gas companies. The company is based in George Town, the Cayman Islands.

Receive News & Ratings for Ensco Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Ensco and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply